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Edited version of private advice
Authorisation Number: 1051751344601
Date of advice: 23 September 2020
Ruling
Subject: GST and sale of existing residential premises
Question 1
Is the sale of the existing residential premise at xx by xx a taxable supply with section 9-5 of a New Tax System (Goods and Services Tax) Act 1999 ("GST Act")?
Answer
No -the sale is not a taxable supply as not all the requirements under section 9-5 of the GST Act are met.
This ruling applies for the following period:
1 July 201x - 30 June 20xx
The scheme commences on:
1 July 201x
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999
Section 9-5
Section 9-20
Section 9-40
Section 40-65
Reasons for Decision
Summary
Reasons for Decision
Summary
Section 9-5 of the GST Act states you make a taxable supply if (a) you make a supply for consideration and (b) it is in the course or furtherance of an enterprise that you carry on and (c) the supply is connected with the indirect tax zone (Australia) and (d) you are registered or required to be registered. However, the supply is not a taxable supply to the extent that it is GST-free or input taxed.
A supply is input tax if:
a) it is input taxed under Division 40 or under a provision of another Act; or
b) it is a supply of a right to receive a supply that would be input taxed under paragraph (a).
In your case, you are considering selling an existing residential premise. A sale of an existing residential premise is considered as an input tax supply under Division 40, therefore you will not be subject to GST for the sale of the property to xx. As there is no GST liability, you will also not be able to claim any GST credits for anything you purchased in relation to the sale at xx.