Private ruling: Financial supply vs property transaction
Date of advice: 5 March 2019
Published: May 2019
Ruling period: Not applicable
Date scheme commenced: Not applicable

Ruling: Q1: Is the sale to each purchaser of an apartment, car park and storage lot in the development by way of share allocation an input taxed supply financial supply? | A1: No – they are not an input taxed financial supply | Q2: If the answer to question 1 is no, is the GST treatment of each sale to a purchaser as follows – (a) The sale of each apartment – an input taxed supply of residential premises by way of lease pursuant to section 40-35(1) of the GST Act; (b) The sale of each car park – a taxable supply of an interest in real property by way of lease pursuant to section 9-5 of the GST Act; and (c) The sale of each storage lot - a taxable supply of an interest in real property by way of lease pursuant to section 9-5 of the GST Act. | A2: Yes - the GST treatment of each sale to a purchaser as follows – (a) The sale of each apartment – an input taxed supply of residential premises by way of lease pursuant to section 40-35(1) of the GST Act; (b) The sale of each car park – a taxable supply of an interest in real property by way of lease pursuant to section 9-5 of the GST Act; and (c) The sale of each storage lot - a taxable supply of an interest in real property by way of lease pursuant to section 9-5 of the GST Act. | Q3: Does the GST withholding regime in subdivision 14-E of Schedule 1 to the Taxation Administration Act 1953 (TAA) apply to the supplies made to purchasers of apartment, car parks and storage lots? | A3: The GST withholding regime in subdivision 14-E of Schedule 1 to the Taxation Administration Act (TAA) 1953 does not apply to the supplies made to purchasers of apartment, car parks and storage lots. That is because the supplies are neither, new residential property or new residential land.

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 | Taxation Administration Act (TAA) 1953 - S ubdivision 14-E of Schedule 1 to the TAA

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.