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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This edited version has been archived due to the length of time since original publication.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: 1012908203776

Date of advice: 6 November 2015

Ruling

Subject: Goods and Services Tax: Supply of a going concern

Question

Will your supply of your premises be a GST-free supply of a going concern for the purpose of section 38-325 of the A New Tax System (Goods and Services Tax) Act 1999?

Answer

Yes, your supply of the premises will be a GST-free supply of a going concern as:

    • on settlement date, you will be providing the purchaser all of the things that are necessary for the continued operation of a leasing enterprise, being the premises and the continuing lease agreement.

    • you will continue to carry on the leasing enterprise until the day of the supply

    • you and the purchaser have agreed in writing that the sale is a supply of a going concern

    • the sale is for consideration, and

    • the purchaser is registered for GST.

Relevant facts and circumstances

This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.

You are registered for GST.

You are the owner and developer of a premises of which you entered into a contract for sale (sale contract), subject to your successful completion of construction at the premises prior to settlement.

At the time of entering the sale contract you and the purchaser agreed you would enter into a lease with a third party tenant prior to settlement of the property. That is, the purchaser would acquire possession of the premises subject to the lease to the tenant.

You provided a copy of the sale contract which provides:

    • the supply will be for consideration

    • on settlement date, you will be providing the purchaser all of the things that are necessary for the continued operation of a leasing enterprise, being the premises and the continuing lease agreement

    • you will continue to carry on the leasing enterprise until the day of the supply

    • you and the purchaser have agreed in writing that the sale is a supply of a going concern

    • the sale is for consideration, and

    • the purchaser is registered for GST.

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 38-325


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