Private ruling: GST and sale of property
Published: December 2014
Date scheme commenced: You owned and operated an enterprise.

Ruling: Q1: Is GST applicable to the sale of your property in which you operated a business? | A1: No.

Relevant facts and circumstances: You owned and operated an enterprise. You operated from a two storey dwelling with a residential area on the top floor and the bottom floor being a business since then. You recently stopped trading and have cancelled your ABN, PAYG obligations, withholding tax obligations and GST registration. You have also cancelled the business name under which you traded. You informed us that you do not have the intention to start a business again in the future and that you are not currently carrying on any other business. You also informed us that you have not sold business premises in the past and do not intend to sell any in the future and that you are not in the business of buying and selling houses. You are selling your premises as individuals and want to know whether you have to pay GST on the sale of your premises.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-5

Reasons for decision: Summary: For the supply of anything to be subject to the goods and services tax, the supply must satisfy all of the provisions of section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). Section 9-5 of the GST Act provides that you make a taxable supply if you make the supply for consideration, the supply is made in the course or furtherance of an enterprise that you carry on, is connected with Australia and you are registered, or required to be registered. However, the supply is not a taxable supply to the extent that it is GST-free or input taxed. In this case you are selling the property in which you operated an enterprise. The property is a two storey dwelling with a residential area on the top floor and the bottom floor being a business since then. You informed us that you stopped trading and have cancelled your ABN, PAYG obligations, withholding tax obligations and GST registration. You have also cancelled the business name under which you traded and you do not have the intention to start a business again in the future and you are not currently carrying on any other business. You also informed us that you have not sold business premises in the past and do not intend to sell any in the future and that you are not in the business of buying and selling properties. You are selling your premises as individuals and are not registered or required to be registered for GST. You are also not carrying on any enterprise. Therefore, your sale of the property will not be subject to GST.