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Edited version of your written advice
Authorisation Number: 1012761900609
Ruling
Subject: GST and registration
Question
Are you required to be registered for goods and services tax (GST) under section 23-5 of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act)?
Answer
No, you are not required to be registered for GST under section 23-5 of the GST Act because your GST turnover does not meet the $75,000 registration turnover threshold.
This is because in calculating your projected GST turnover the expected sales proceeds from the Land are disregarded under section 188-25 of the GST Act.
Relevant facts and circumstances
You are not registered for goods and services tax (GST).
You purchased a specified address (Land). There is a shed that is used as an old workshop on the Land. There are also some demountable buildings on the Land. The shed and demountable buildings are used as offices by a book keeper and you. There are no residential premises on the Land.
You purchased the Land to lease to a related entity.
You have made the Land available to three related entities.
You act on behalf of the three entities.
The related entities are registered for GST. They acquired the lease over the Land solely in carrying on their enterprises. They did not make any input taxed supplies.
You previously charged Entity A approximately a specified number per month in rent. However, no rent has been charged to the entities since a specified year.
The market value rent for the Land is approximately a specified number per year. The entities are not in a financial position to pay market value rent for the use of the Land.
You also operated an enterprise. You were registered for GST because of the turnover from this business. However, you ceased carrying on this business in a specified year and cancelled your GST registration effective a specified date.
You are now planning to retire and have appointed an agent to sell the Land and buildings. The agent has attended to all aspects of marketing. You will not be involved in any development and are merely seeking to sell the Land at the highest price. The Land will be sold in its current state.
You have received an offer of a specified number for the Land.
You are not in the business of selling land. The Land is held as a capital asset.
You do not carry on any enterprise of any kind apart from what is described above.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 23-5
A New Tax System (Goods and Services Tax) Act 1999 section 72-5
A New Tax System (Goods and Services Tax) Act 1999 subsection 188-10(1)
A New Tax System (Goods and Services Tax) Act 1999 section 188-25