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Edited version of your written advice
Authorisation Number: 1051460774839
Date of advice: 28 November 2018
Ruling
Subject: Sale of property including a lease
Question
Is the sale of a property in XX a GST-free supply of a going concern?
Answer
Yes
This ruling applies for the following period: 01/07/2018 to 30/08/2019
Relevant facts and circumstances
● You (vendor) and the purchaser are both registered for GST
● You entered into a contract to sell a property for $XXXX
● The property was rented to a third party to carry on a commercial enterprise on the premises
● You sold the property to the purchaser subject to the current lease
● The contract of sale also assigned the current lease to the purchaser
● The enterprise will continue until settlement
● Both you and the purchaser agreed in writing that this would be a GST-free sale of a going concern.
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 subsection 38-325(1)
A New Tax System (Goods and Services Tax) Act 1999 subsection 38-325(2)
Reasons for decision
The facts outlined above indicate that the sale of the property satisfies the requirements of subsections 38-325(1) and 38-325(2) of the GST Act. Consequently you are making a GST-free sale of a going concern when you sell the property to the purchaser and assign the current lease of the premises to the purchaser.