| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1051189145272
Ruling
Subject: GST and enterprise
Question
Are your supplies of specified properties taxable supplies under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
No, your supplies of specified properties are not taxable supplies under section 9-5 of the GST Act. Your sales are not in the course or furtherance of an enterprise and therefore are not taxable supplies.
Relevant facts and circumstances
You (specified persons) are not registered for GST. You are not registered for GST individually nor as a partnership.
You originally purchased the land on ddmmyy and built the family home on it. The property is located at a specified address. The land in total is a specified area and your family lived on this property since then. You did not purchase the land with the intention of resale at a profit.
You are considering subdividing the land into a few blocks. You propose to sell two vacant blocks of land. In addition, you intend to sell the two blocks of land immediately after the subdivision is completed. You will retain the block with the dwelling as your principal place of residence. The two subdivided blocks will be specified area each. There are no buildings on the land to be subdivided and sold, except for the existing home.
You are not engaged in the business of subdivision of land, and have not previously conducted a subdivision of land.
You will be carrying out as much of the work as you can instead of engaging professionals. You intend doing the minimum amount of work in order to satisfy development approval. The land will be listed with a real estate agent for an arm's length sale.
You do not carry on any other enterprise either individually or as a 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 paragraph 9-5(a)
A New Tax System (Goods and Services Tax) Act 1999 paragraph 9-5(c)
A New Tax System (Goods and Services Tax) Act 1999 section 9-20
A New Tax System (Goods and Services Tax) Act 1999 section 9-40