Edited version of private advice

Authorisation Number: 1052507489316

Date of advice: 24 February 2026

Ruling

Subject: GST - sale of new residential premises

Question

Is the sale of your property located at XXXX (the Property) a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer

No. Your sale of the Property was made in the course or furtherance of an enterprise you carry on, for consideration, and is connected with Australia. However, because you are neither registered nor required to be registered for GST, the sale is not a taxable supply under section 9-5 of the GST Act. GST is therefore not payable on the sale of the Property.

This ruling applies for the following periods:

01/07/YYYY to 30/06/YYYY

The scheme commenced on:

DDMMYYYY

Relevant facts and circumstances

Person A and Person B (You) are not registered for GST, as a partnership or individually, nor have you been registered for GST in the past.

On DDMMYYYY, you purchased vacant land located XXXX (Plan X) (the Property) for $X. Settlement occurred on DDMMYYYY.

At the time of purchase, your intention was to construct a residential property to be used for leasing.

Since acquiring the property, the address has changed to XXXX (Plan X).

You engaged a mortgage broker, who prepared a Credit Proposal document dated DDMMYYYY, which outlined your loan 'Requirements and Objectives' as follows:

Person A & Person B - your main objective is to refinance your existing owner-occupied home loan to obtain a more competitive deal, decrease your loan term to 20 years and cash out approx. $X which $X to fund purchase of land for investment purpose at 30 years loan term and remaining for non-structural renovation for the investment property...'

You secured the property purchase with loans through the following financial arrangements:

•                On DDMMYYYY, you were approved for a XXXX Loan for $X.

-               The term of the loan is 30 years.

-               The purpose of the loan is 'Investment, Off the plan purchase'.

•                On <date>, you were approved for a <company> Loan for <amount>.

-               The term of the loan is 30 years.

-               The security for this loan is over your primary residence, XXXX.

•                On DDMMYYYY, you were approved for the refinancing of your existing housing loans, with the new loan facility totalling $X.

-               The term of the loan is 30 years.

-               The loan was secured by the existing mortgage over the Property.

You signed a contract with XXXX to build the residence upon the release of the title on DDMMYYYY.

Construction started in early MMYYYY, with the slab being poured on DDMMYYYY.

You received the keys on DDMMYYYY when the residence was completed to the lock up stage.

You then commenced the final works to ensure the property was suitable for use as a rental property. Complications in securing trades caused delays in completing the works, impacting the timeline for making the property available for rent.

At this time, your child and their housemates were experiencing difficulty meeting their rental obligations. Rental market conditions made securing affordable accommodation challenging. Returning to the family home on a permanent basis was not a viable option for them and their housemates.

To assist your child, you purchased a property for them to live in, with settlement taking place on DDMMYYYY.

After completing your tax returns and discussing your financial position with your accountant, you decided to sell the Property as holding both properties was not viable. The debt levels and delays associated with the development resulted in financial stress, with the combined debt levels for property exceeding $X.

On DDMMYYYY, you sold the Property through XXXX in an off-market sale for $X. Settlement occurred on DDMMYYYY.

You have built two family homes in the past:

•                You built the property at XXXX in YYYY and lived there until YYYY. This property has since been sold.

•                You built the property at XXXX, which has been your primary residence since YYYY.

You have no plans to undertake any construction or subdivision activities in the future.

You hold XXXX as a tenanted rental property.

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 40-65

A New Tax System (Goods and Services Tax) Act 1999 section 40-75

A New Tax System (Goods and Services Tax) Act 1999 section 188-10

A New Tax System (Goods and Services Tax) Act 1999 section 188-15

A New Tax System (Goods and Services Tax) Act 1999 section 188-20

A New Tax System (Goods and Services Tax) Act 1999 section 188-25

A New Tax System (Goods and Services Tax) Act 1999 section 195-1

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).