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Edited version of private advice
Authorisation Number: 1052382350170
Date of advice: 11 April 2025
Ruling
Subject: GST - sale of property
Question 1
Is the sale of the commercial property located at a specified address (the Property) a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer 1
No.
Based on the information provided X is the supplier of the Property. X is not selling the Property in the course or furtherance of an enterprise that they are carrying on. X is not registered nor required to be registered for GST. Therefore, the supply of the Property by X is not a taxable supply as it does not meet all the requirements of section 9-5 of the GST Act.
This ruling applies for the following period:
1 July 20XX to 30 June 20XY
Relevant facts and circumstances
X does not hold an ABN, has never been registered for GST in their personal capacity and was not required to be registered for GST as their activities did not meet the GST registration threshold.
X purchased the Property on a specified date.
The Property has been used partly as a residence for X and their family and partly for a specified business (the business) operated by X in partnership with another entity (the Partnership).
After X purchased the Property, they allocated an area in the building for residential use.
The Partnership had commenced the business prior to the purchase of the Property. The Property served as the location for the business from the date of its purchase by X. The Partnership registered for GST with effect from a specified date.
On a specified date, the relevant council officially recognised the Property as being used for business and residence, confirming its mixed-use nature.
Due to a reduction in the scale of the business, which no longer required GST registration, the Partnership cancelled its GST registration with effect from a specified date. The Partnership ceased carrying on the business around the time that it cancelled its GST registration. The Partnership has not been carrying on any other enterprise.
The contract for the sale of the Property (the Contract) was executed on a specified date with the specified buyer. The Contract was settled on a specified date.
The Contract provides that the purchase price does not include GST.
No substantial renovations were done to the Property since its purchase.
The Property was not a partnership asset and was not treated as a partnership asset in the books of the Partnership.
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 section 9-20
A New Tax System (Goods and Services Tax) Act 1999 section 23-5
A New Tax System (Goods and Services Tax) Act 1999 section 23-10
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