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Edited version of private advice
Authorisation Number: 1051622718066
Date of advice: 20 December 2019
Ruling
Subject: Sale of a going concern
Question
Will each sale of a freehold property and a leased property you make to a property purchaser pursuant to the provisions of the agreements, qualify as a GST-free supply of a going concern under Subdivision 38-J of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes. Each sale of a freehold property and a leased property you make to a property purchaser pursuant to the provisions of the agreements, will qualify as a GST-free supply of a going concern under Subdivision 38-J of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
This ruling applies for the following periods:
From the tax period commencing 1 July 2018 and following.
Relevant facts and circumstances
You operate a large business and you wish to sell it in smaller units as separate enterprises.
Each sale will be conducted on basis that a simultaneous supply of property, assets and a business will occur for each discrete sale.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999
Section 9-20
Section 38-325
Reasons for decision
The enterprises will be supplied such that they operate until settlement and all things necessary will be supplied to the recipient to conduct a business.
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