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Edited version of private advice
Authorisation Number: 1052024489196
Date of advice: 23 August 2022
Ruling
Subject: Taxable supply - sale of property
Question
Will the sale of the property by you be a taxable supply in accordance with A New Tax System (Goods and Services Tax) Act 1999 (GST Act) and as a consequence be subject to the goods and services tax (GST) Withholding provisions under section 14-250 of Schedule 1 to the Taxation Administration Act 1953 (TAA)?
Answer
No.
Based on the information you provided, under section 9-20 of the GST Act you are not carrying on an enterprise in relation to the property as the activity done by you is not done:
• in the form of a business; or
• in the form of an adventure or concern in the nature of trade.
Therefore, the sale of the property by you will not be a taxable supply as you are not required to be registered for GST under section 23-5 of the GST Act. As the sale of the property will not be a taxable supply the GST Withholding provisions under section 14-250 of Schedule 1 to the TAA do not apply.
As a result, you are not required to remit GST on the sale of the property and the purchaser of the property is not required to withhold an amount at settlement.
This ruling applies for the following period:
Financial year ending 30 June 20XX
The scheme commences on:
The date this ruling is issued
Relevant facts and circumstances
You built the property in XXXX and the occupancy certificate was issued to you on XXXX.
You have lived in the property since it was completed as your residential premises.
You are not carrying on an enterprise in relation to this property.
You do not hold and Australian Business Number (ABN).
The contract of sale in relation to this property states that there is no GST on the sale of the property and that GST withholding does not apply to the sale.
You have provided to the purchaser the GST Withholding Notice as required under the law that states that states that the purchaser is not required to make a payment under section 14-250 of Schedule 1 to the TAA.
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 section 9-20
A New Tax System (Goods and Services Tax) Act 1999 section 23-5
Schedule 1 to the Taxation Administration Act 1953 section 14-250
Reasons for decision
Based on the information you provided, under section 9-20 of the GST Act you are not carrying on an enterprise in relation to the property, as the activities done by you are not done:
• in the form of a business; or
• in the form of an adventure or concern in the nature of trade.
Therefore, the sale of the property by you will not be a taxable supply as you are not required to be registered for GST under section 23-5 of the GST Act. As the sale of the property will not be a taxable supply the GST Withholding provisions under section 14-250 of Schedule 1 to the TAA do not apply.