Private ruling: Financial supply vs property transaction
Date of advice: 19 February 2018
Published: June 2018

Ruling: Q1: Is a supply of shares and a residential sub lease a composite supply? | A1: Yes. In this case a composite supply, involving a sale of shares and a residential sub lease is a ‘composite supply”. As both supplies are input taxed, they are non-taxable and GST is not payable on the supply. | Q2: If the answer to issue 1 is no, do the underlying characteristics of the property determine the GST treatment of the supply? | A2: As the answer to question one is yes, this question is now moot.

Relevant facts and circumstances: Transactions involving a sale of shares and a residential sub lease.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 – section 9-5 Section 40-5 | Section 40-35 | Section 40-65 | A New Tax System (Goods and Services Tax) Regulation – Regulation 40-5.08 | A New Tax System (Goods and Services Tax) Regulation – Regulation 40-5.09

Reasons for decision: Summary: The transfer of a sub-lease is a taxable supply unless it is input taxed such as residential premises, as provided by section 9-5 of the GST Act.