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Edited version of private advice
Authorisation Number: 1051937303748
Date of advice: 14 January 2022
Ruling
Subject: Input taxed supply - farm land
Question 1
Is the sale of the A property partly a taxable supply and partly an input taxed supply of existing residential premises?
Answer
Yes.
Based on the information you provided, the sale of the A property will be partly a taxable supply and partly input taxed. To the extent that the sale of the A property is a sale of residential premises, it will be input taxed under section 40-65 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). To the extent that the sale of the A property is not a sale of residential premises, it will be taxable under section 9-5 of the GST Act.
Question 2
Is the sale of the B property wholly a taxable supply?
Answer
Yes.
Based on the information you provided, the sale of the B property will be a taxable supply as the requirements of section 9-5 of the GST Act will be met. The sale will not to any extent be GST-free or input taxed.
Question 3
Are the sales of the other properties GST-free supplies of farm land?
Answer
Yes.
Based on the information you provided, the sale of the other properties will be a GST-free supply of farming land under section 38-480 of the GST Act. The other properties are land on which a farming business has been carried on for at least five years preceding the sale and the respective recipients of each supply of land intend that a farming business be carried on, on the land.
This ruling applies for the following period:
1 December 20XX to 30 June 20XX
Relevant facts and circumstances
The ruling was based on the facts as provided.