| Disclaimer This edited version has been archived due to the length of time since original publication.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 private advice
Authorisation Number: 1051597838413
Date of advice: 24 October 2019
Ruling
Subject: GST and sale of property
Question
Is GST payable on the sale of your property?
Answer
No, GST is not payable on the sale of your property.
GST is payable on taxable supplies. Among other things in order for a sale to be a taxable supply the sale must be done in the course of an enterprise carried on by the entity that is making the supply. Considering your circumstances on this occasion we are of the view that the sale of the property is not made in the course of an enterprise carried on by you. However, if you continue to engage in property development of this nature we will be required to reconsider our decision regarding whether your activities amount to an enterprise.
Relevant facts and circumstances
· You purchased vacant land to build your principal place of residence.
· During construction of the residential premises your personal circumstances changed whereby you are no longer required to use the property as your principal place of residence.
· You have just secured a purchaser for the property.
· You have not carried on any property development activities in the past and the sale of the property is merely due to personal circumstances.
Relevant legislative provisions
Section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999