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Edited version of private advice
Authorisation Number: 1052165650006
Date of advice: 6 September 2023
Ruling
Subject: GST - property
Question
Is the sale of the property situated at <address> (the Property) by Entity A (You) a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
No. The sale of the Property will not be a taxable supply under section 9-5 of the GST Act. The sale of the Property will be an input taxed supply of residential premises under section 40-65 of the GST Act. Therefore, GST will not be payable on the sale.
This ruling applies for the followingperiods:
DDMMYYYY to DDMMYYYY
The scheme commenced on:
DDMMYYYY
Relevant facts and circumstances
Entity B is the corporate trustee of Entity A.
Entity A (You) have been registered for GST as a discretionary investment trust since DDMMYYYY.
You are carrying on a leasing enterprise of residential and commercial properties.
On DDMMYYYY, you acquired the residential premises situated at <address> (the Property).
The Property comprises an area of #m2 and contains an established single storey house. The house consists of bedrooms, a bathroom, a living room, a dining room, a study room, a kitchen, a laundry and a sunroom.
The Certificate of Title references for the Property are:
• Lot number: #
• Lot plan (LP): #
• Volume: #
• Folio: #
The Property is zoned as <commercial zoning> under the Council zoning.
Since acquiring the Property, it has always been leased as residential premises.
You have never charged or collected GST for the residential rent.
A Residential Rental Agreement was entered into for a fixed term from DDMMYYYY to DDMMYYYY, for rent payable of $# per month for the first year, increasing to $# per month effective from DDMMYYYY.
You have made a decision to sell the Property. At this stage, the Property is not advertised for sale. You will not be undertaking any subdivision or development activities and will be selling the Property in an as is condition.
Relevant legislative provision
A New Tax System (Goods and Services Tax) Act 1999 Section 9-5
A New Tax System (Goods and Services Tax) Act 1999 Section 9-40
A New Tax System (Goods and Services Tax) Act 1999 Division 38
A New Tax System (Goods and Services Tax) Act 1999 Section 40-65
A New Tax System (Goods and Services Tax) Act 1999 Section 40-75
A New Tax System (Goods and Services Tax) Act 1999 Section 195-1