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Edited version of your written advice
Authorisation Number: 1051519148330
Date of advice: 17 May 2019
Ruling
Subject: Is the sale of land a GST-free sale of farmland?
Question
Is the sale of land by Entity A GST-free under section 38-480 of A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes. The sale of land is GST-free under section 38-480 of the GST Act.
Relevant facts and circumstances
Entity A owns land upon which it allows another entity to carry on a farming business (as per section 38-475 of the GST Act). This activity has been carried on for more than five years and will continue after settlement of the sale of the land.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 38475
A New Tax System (Goods and Services Tax) Act 1999 section 38-480
Reasons for decision
Since the relevant facts and circumstances satisfy the two limbs of section 38-480, the sale of the land in question will be a GST-free sale of farmland as per section 38-480.