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Edited version of your written advice
Authorisation Number: 1051309974659
Date of advice: 19 February 2018
Subject: Financial supply vs property transaction
Question 1:
Is a supply of shares and a residential sub lease a composite supply?
Answer
Yes. In this case a composite supply, involving a sale of shares and a residential sub lease is a ‘composite supply”. As both supplies are input taxed, they are non-taxable and GST is not payable on the supply.
Question 2:
If the answer to issue 1 is no, do the underlying characteristics of the property determine the GST treatment of the supply?
Answer 2
As the answer to question one is yes, this question is now moot.
Relevant facts and circumstances
Transactions involving a sale of shares and a residential sub lease.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 – section 9-5
Section 40-5
Section 40-35
Section 40-65
A New Tax System (Goods and Services Tax) Regulation – Regulation 40-5.08
A New Tax System (Goods and Services Tax) Regulation – Regulation 40-5.09
Reasons for decision
The transfer of a sub-lease is a taxable supply unless it is input taxed such as residential premises, as provided by section 9-5 of the GST Act.