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Edited version of private advice
Authorisation Number: 1052370941058
Date of advice: 7 March 2025
Ruling
Subject: GST - charities
Question 1
Will the sub-lease of the Social Dwellings (as defined in the Head Lease) by Entity A to Entity B be a GST-free supply pursuant to section 38-250 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes, the sub-lease of the Social Dwellings (as defined in the Head Lease) by Entity A to Entity B will be a GST-free supply pursuant to section 38-250 of the GST Act provided that, using the proposed methodology in Question 3, the supply is for consideration that is less than 75% of the GST-inclusive market value of the supply.
Question 2
Will the sub-lease of the Residential Premises (as defined in the Sub Lease) by Entity A to Entity C, be a GST-free supply of accommodation pursuant to section 38-250 of the GST Act?
Answer
Yes, the sub-lease of the Residential Premises (as defined in the Sub Lease) by Entity A to Entity C will be a GST-free supply of accommodation pursuant to section 38-250 of the GST Act provided that, using the proposed methodology in Question 3, the supply is for consideration that is for less than 75% of the GST-inclusive market value of the supply.
Question 3
For the purposes of the GST-free provisions in section 38-250 of the GST Act, does the Commissioner agree with the proposed method for determining the market value of the supplies made by Entity A of the Social Dwellings to Entity B under the Head Lease and the Residential Dwellings to Entity C under the Sub Lease?
Answer
Yes, the Commissioner agrees with the proposed methodology for determining the market value of the supplies made by Entity A of the Social Dwellings to Entity B under the Head Lease and of the Residential Premises to Entity C under the Sub Lease.
The scheme commenced on:
DDMMYYYY
Relevant facts and circumstances
The applicant provided the relevant contracts which define the scheme.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 9-10
A New Tax System (Goods and Services Tax) Act 1999 section 9-15
A New Tax System (Goods and Services Tax) Act 1999 section 38-250
A New Tax System (Goods and Services Tax) Act 1999 section 195-1