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Edited version of private advice
Authorisation Number: 1052203218642
Date of advice: 13 December 2023
Ruling
Subject: GST - the sale of land
Question
Will the supply of vacant land to a developer be a taxable supply under s9-5 of the A New Tax System (Goods and Services Tax) Act 1999?
Answer
No. The land is not supplied in the course or furtherance of an enterprise. As such, it is not a taxable supply.
This ruling applies for the following period:
1 July 2023 to 30 June 2027
The scheme commences on:
The date of issue of this private ruling
Relevant facts and circumstances
You purchased the property in the XX's.
Neither entity is registered for GST.
At the time of purchase, there was only a shed on the property.
The vacant land has not been used for any purpose since purchase.
There have been no improvements to the property since purchase.
There have been no activities undertaken by the owners with respect to the property.
The margin scheme was not used at the time of purchase being prior to 1 July 2000.
You do not intend to use the margin scheme.
Neither owner have been involved in any sub-divisions in the past.
You will not be subdividing the land for sale.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 9-5