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Edited version of private advice
Authorisation Number: 1051917584487
Date of advice: 3 November 2021
Ruling
Subject: GST and sale of property
Question
Will the sale of your property located in Australia (the Property) be a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
No. Therefore, GST is not payable on the sale.
The sale is not a taxable supply under section 9-5 of the GST Act because you are not registered or required to be registered for GST.
The sale of the property is a sale of a capital asset and therefore, it is excluded from the calculation of your projected GST turnover in accordance with section 188-25 of the GST Act. As your projected GST turnover is under $75,000, you are not required to be registered for GST.
Relevant facts and circumstances
You are not, and have never been, registered for GST because your relevant income has always been under the registration turnover threshold.
You purchased a commercial property located in Australia many years ago.
You have leased out the property since that time.
You do not carry on a business or enterprise elsewhere.
You will sell the property.
You do not intend to carry on any business or enterprise elsewhere after settlement of sale of the property.
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 Division 188