Private ruling: Sale of property including a lease
Date of advice: 28 November 2018
Published: March 2019

Ruling: Q1: Is the sale of a property in XX a GST-free supply of a going concern? | A1: Yes

Relevant facts and circumstances: ● You (vendor) and the purchaser are both registered for GST ● You entered into a contract to sell a property for $XXXX ● The property was rented to a third party to carry on a commercial enterprise on the premises ● You sold the property to the purchaser subject to the current lease ● The contract of sale also assigned the current lease to the purchaser ● The enterprise will continue until settlement ● Both you and the purchaser agreed in writing that this would be a GST-free sale of a going concern.

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 38-325(1) | A New Tax System (Goods and Services Tax) Act 1999 subsection 38-325(2)

Reasons for decision: Summary: The facts outlined above indicate that the sale of the property satisfies the requirements of subsections 38-325(1) and 38-325(2) of the GST Act. Consequently you are making a GST-free sale of a going concern when you sell the property to the purchaser and assign the current lease of the premises to the purchaser.

This ruling applies for the following period: 01/07/2018 to 30/08/2019