| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1012889470166
Date of advice: 8 October 2015
Ruling
Subject: GST and registration
Question
Will there be GST on the sale of the Land?
Answer
No.
GST is payable on any taxable supply that you make. The requirements of a taxable supply under section 9-5 of the A New Tax System (Goods and Service Tax) Act 1999 (GST Act) include that you are registered or required to be registered for GST.
The sale of the Land constitutes the transfer of ownership of a capital asset for the purposes of section 188-25 of the GST Act and will be disregarded when calculating your projected turnover.
As the value of the transfer of the Land is excluded from the calculation of your GST turnover, you are not required to be registered pursuant to section 23-5 of the GST Act.
Therefore, you are not making a taxable supply when you sell the Land and there will be no GST applicable to the sale.
Relevant facts and circumstances
(You) are not registered for GST.
You are carrying on a leasing enterprise.
You jointly own vacant land in an industrial area (the Land).
The Land is leased and the tenant uses the land for storage. There is no formal lease agreement.
Your current GST turnover is less than $75,000.
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 9-40
A New Tax System (Goods and Services Tax) Act 1999 Section 23-5, and
A New Tax System (Goods and Services Tax) Act 1999 Division 188.