Private ruling: GST and sale of property
Date of advice: 18 September 2015
Published: September 2015

Ruling: Q1: Will goods and services tax (GST) be applicable on the supply of the property located in the indirect tax zone? | A1: No. From the information received, you will be selling residential premises to the potential buyer. The sale of resident premises is an input taxed supply under subsection 40-65(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) and therefore no GST will be payable on the supply.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are registered for GST and have purchased a property located in the indirect tax zone. The property is zoned as 'general residential'. The property has a building that was constructed several years ago. The building has several rooms and the rooms have its own toilets and showers. It also has a community dining area with its own kitchen. The building was used as an aged care facility and the age care centre ceased its operation several years before you purchase the property. Currently the building is empty and you are considering selling the property. You have not carried on works of any kind since the purchase except to remove rubbish after the purchase. You have not carried on any business activity on the purchased property and you intend to sell the property as it is. The buyer will gain all pertinent documents to the property including all the past approved plans for the building even though they are expired.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 subsection 40-65(1)