Private ruling: GST - sale of vacant land
Date of advice: 18 May 2026
Published: 27 July 2026
Ruling period: XX XXX XXXX to XX XXX XXXX
Date scheme commenced: XX XXX XXXX

Ruling: Q1: Is the sale of vacant residential land at XXXX (the Property) by you a taxable supply pursuant to section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes, as all the requirements under section 9-5 of the GST Act are met.

Relevant facts and circumstances: The XXXX Super Fund (You) was established on XX XXX XXXX and the corporate trustee is XXXX. The trustees for the fund and the directors of the company are XXXX and XXXX. You are registered for GST since XX XXX XXXX. You are carrying an enterprise of leasing commercial property which previously included a residential property. You acquired vacant land at YY ('the Property') on XX XXX XXXX. The purchase price for the Property was $XXXX inclusive of GST. Your intention when you purchased the Property was for it to be held to appreciate over time, with the possibility to build and use it as a main residence for XXXX and XXXX. The Property is classified as residential under XXXX. You have installed and maintained X as required by XXXX. You have not conducted any property development activities in relation to this Property. You did not claim any input tax credits on this Property. You are planning to sell the Property to realise the asset as XXXX and XXXX are both wanting the fund assets to be liquidated. You are not a property developer and have not undertaken any property development activities in the past.


Reasons for decision: Summary: Section 9-5 of the GST Act sets out the requirements of a taxable supply, and it states: You make a taxable supply if: (a) you make the supply for *consideration; and (b) the supply is made in the course or furtherance of an *enterprise that you *carry on; and (c) the supply is *connected with the indirect tax zone; and (d) you are *registered, or *required to be registered. However, the supplyis not a * taxable supplyto the extent that it is *GST-free or * input taxed . (* denotes a term defined in section 195-1 of the GST Act.) In your case, the supply of the Property will be for consideration, the sale is connected with the indirect tax zone as the vacant land is located in Australia and you are registered for GST. Therefore, paragraphs 9-5(a), 9-5(c) and 9-5(d) of the GST Act are satisfied. There is no provision in the GST Act that makes a supply of vacant land in Australia GST-free or input taxed. Therefore, we must determine whether the sale of the Property satisfied paragraph 9-5(b) of the GST Act, that is whether the supply is in the course or furtherance of an enterprise you carry on. | Detailed Reasoning - Enterprise: Section 9-20 of the GST Act defines 'enterprise' to include, amongst other things, an activity or series of activities done: • in the form of a business • in the form of an adventure or concern in the nature of trade Miscellaneous Taxation Ruling MT 2006/1 The New Tax System: the meaning of entity carrying on an enterprise for the purposes of entitlement to an Australian Business Number (MT 2006/1) considers the meaning of 'enterprise' for the purposes of entities' entitlement to an Australian business number (ABN). Goods and Services Tax Determination GSTD 2006/6 Goods and services tax: does MT 2006/1 have equal application to the meaning of 'entity' and 'enterprise' for the purposes of the A New Tax System (Goods and Services Tax) Act 1999 confirms that the principles in MT 2006/1 apply equally to the term enterprise for GST purposes. Based on the facts provided, you are carrying on an enterprise of leasing commercial property which previously included a residential property. Whether or not an activity, or series of activities, amounts to an enterprise is a question of fact and degree having regard to all of the circumstances of the case. Federal Commissioner of Taxation v. Swansea Services Pty Ltd [2009] FCA 402; [2009] ATC 20-100 (Swansea) deals with the issue of enterprise. McKerracher J stated the following in the decision: • there is nothing in the GST legislation that indicates investment activities cannot amount to an enterprise (paragraph 63), • the scope of the definition of enterprise is wide - one activity alone may qualify as an enterprise (paragraph 64), • the Explanatory Memorandum of the GST Act also indicates that enterprise is to be viewed widely (paragraph 67), and • enterprise is a broader concept than carrying on a business. The GST Act does not stipulate that there must be regular sales for an enterprise to exist (paragraphs 68-69). From the time of purchase, you have held the Property with the intention of holding it to be appreciated over time from the value of the vacant land, with the possibility to build and use it as a main residence. In Swansea , it was noted that the GST legislation does not preclude investment activities from amounting to carrying on of an enterprise. The phrase 'in the course or furtherance of' is not defined in the GST Act. The Explanatory Memorandum to the A New Tax System (Goods and Services Tax) Bill 1998 supports a broad meaning of the phrase 'in the course or furtherance of'. Paragraph 3.10 states: 3.10 In the course or furtherance is not defined but is broad enough to cover any supplies made in connection with your enterprise. An Act done for the purpose or object of furthering an enterprise, or achieving its goals, is a furtherance of an enterprise although it may not always be in the course of that enterprise. In the course or furtherance does not extend to the supply of private commodities, such as when a car dealer sells his or her own private car. See Case N43 (1991) 13 NZTC 3361. Therefore, in the given circumstances, even upon a finding that the single action that you undertook by holding on to the Property as a long-term asset since the time of purchase and then selling it, may not amount to a separate enterprise, the Property remains an asset of an enterprise that you carry on. The profits from the sale of the Property would benefit you and the sale would contribute to the furthering of the overall enterprise carried out by you. Further, where you are registered or required to be registered for GST, the disposal of a capital asset in Australia in the course of carrying on your enterprise, is a taxable supply and you are required to account for GST on that sale. Consequently, the sale of the Property is made in the course or furtherance of an enterprise that you carry on, and paragraph 9-5(b) of the GST Act is satisfied. As all the requirements of section 9-5 of the GST Act are met, the sale of the property is a taxable supply and therefore, GST is payable on the sale.

Relevant legislative provision s: A New Tax System (Goods and Services Tax) Act 1999 section 9-5 | A New Tax System (Goods and Services Tax) Act 1999 section 9-20 | A New Tax System (Goods and Services Tax) Act 1999 section 195-1