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Edited version of private advice
Authorisation Number: 1052360176130
Date of advice: 11 February 2025
Ruling
Subject: GST - residential premises
Question 1
Will the sale of your residential premises, be subject to GST when sold?
Answer 1
No. The sale of your residential premises will not be subject to GST when sold as it is the sale of an input taxed supply of residential premises and does not meet the requirements of a taxable supply in accordance with section 9-5.
This ruling applies for the following periods:
Financial year ending 30 June 20XX
Financial year ending 30 June 20XX
The scheme commences on:
The date this private ruling is issued.
Relevant facts and circumstances
• You purchased the property with the intention to reside in it as your residence.
• The property is your main residence and has been since XXXX.
• You subdivided the block and built a new residence in which you intend to move to when completed.
• You made minor changes to the original property.
• You have now listed the original property for sale through a real estate agent.
• You do not have an ABN.
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 subsection 40-65(1)
Reasons for decision
Under section 9-5, an entity makes a taxable supply where the supply:
1. is made for consideration; and
2. is made in the course or furtherance of an enterprise being carried on; and
3. is connected with the indirect tax zone; and
4. is made by a supplier who is registered or required to be registered for GST.
However, the supply is not a taxable supply to the extent that it is GST-free or input taxed.
Under subsection 40-65(1) the sale of residential premises is an input taxed supply, where the property is residential premises to be used predominately for residential accommodation.
In this case, the property is your residence in which you have resided since XXXX. The sale of the property will be an input taxed supply of residential premises and is not subject to GST.
Conclusion
The sale of the property will not be subject to GST when sold by you, as you are selling a residential premises in which you reside and, as a result, the sale will not qualify as a taxable supply under section 9-5.