Goods and Services Tax Advice

GSTA TPP 068W

Goods and services tax: would the addition of a second storey to a single storey house constitute 'substantial renovations' so as to make the premises 'new residential premises'?

• Please note that the PDF version is the authorised version of this withdrawal notice.
  This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Notice of Withdrawal

Goods and Services Tax Advice GSTA TPP 068 is withdrawn with effect from today.

1. GSTA TPP 068 explained that the addition of a second storey to a single storey house would not constitute 'substantial renovations' so as to make the premises 'new residential premises' where, although the entire roof was removed, the existing ceilings were not replaced and only one room was affected by the conversion of a staircase.

2. GSTA TPP 068 is withdrawn as the Commissioner's view regarding the meaning of 'substantial renovations' for the purposes of determining whether premises are 'new residential premises' under section 40-75 of A New Tax System (Goods and Services Tax) Act 1999 is outlined in paragraphs 53 to 83 of the Goods and Services Tax Ruling GSTR 2003/3 Goods and services tax: when is a sale of real property a sale of new residential premises?

3. GSTR 2003/3 also includes examples which provide guidance on distinguishing between substantial and non substantial renovations.

4. GSTA TPP 068 is therefore a duplication of an existing ATO view and is no longer required.

Commissioner of Taxation
25 June 2014

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Not previously issued as a draft

References

ATO references:
NO 1-5IPDO0W