| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1051460774839
Date of advice: 28 November 2018
Ruling
Subject: Sale of property including a lease
Question
Is the sale of a property in XX a GST-free supply of a going concern?
Answer
Yes
This ruling applies for the following period: 01/07/2018 to 30/08/2019
Relevant facts and circumstances
● You (vendor) and the purchaser are both registered for GST
● You entered into a contract to sell a property for $XXXX
● The property was rented to a third party to carry on a commercial enterprise on the premises
● You sold the property to the purchaser subject to the current lease
● The contract of sale also assigned the current lease to the purchaser
● The enterprise will continue until settlement
● Both you and the purchaser agreed in writing that this would be a GST-free sale of a going concern.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 9-5
A New Tax System (Goods and Services Tax) Act 1999 subsection 38-325(1)
A New Tax System (Goods and Services Tax) Act 1999 subsection 38-325(2)
Reasons for decision
The facts outlined above indicate that the sale of the property satisfies the requirements of subsections 38-325(1) and 38-325(2) of the GST Act. Consequently you are making a GST-free sale of a going concern when you sell the property to the purchaser and assign the current lease of the premises to the purchaser.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
