| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052370482632
Date of advice: 06 March 2025
Ruling
Subject: GST - free
Question 1
Are you eligible to sell your commercial property as a GST-free supply of a Going Concern in accordance with section 38-325?
Answer 1
No. Because you are not registered for GST, the sale of the commercial property will not be a taxable supply and, as a result, the provisions of section 38-325 are not applicable in this case.
This ruling applies for the following periods:
Financial year ending 30 June 20XX, to
Financial year ending 30 June 20XX
The scheme commences on:
The date this private ruling is issued
Relevant facts and circumstances
You purchased a commercial property as an investment.
There is a lease in place on the property for the next X years.
The property is currently listed for sale through a real estate agent.
You have an Australian business number, but you are not registered for GST.
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 38-325
A New Tax System (Goods and Services Tax) Act 1999 section 188-25
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.
In this case, you are not registered for GST nor are you required to be registered for GST in relation to the leasing enterprise you carry on.
The sale will be the sale of a capital asset under s188-25(a), meaning that the amount received from the purchaser is not included in calculating your GST registration turnover. Therefore, the sale of the property will not be a taxable supply when sold.
Because the sale of the property is not a taxable supply, section 38-325 is of no relevance to your circumstances.