Private ruling: GST - sale of residential premises
Date of advice: 2 October 2025
Published: 24 November 2025
Ruling period: From the financial year commencing 01 July 20XX until the financial year ending 30 June 20XX.
Date scheme commenced: 16 June 20XX

Ruling: Q1: Are you entitled to treat the acquisition of the property as an input-taxed supply of residential premises under section 40-65 of the A New Tax System (Goods and Services Tax) Act 1999 ? | A1: Yes. Based on the fact that there was a residence that was not new on the property at the date you acquired it, the supply was of residential premises. The extent to which it is a residential premises is determined by facts which are not within your knowledge. Your intended use of the premises is not relevant to the assessment of whether you made a creditable acquisition of the property. The outcome may have been different had the existing residence been demolished prior to the sale.

Relevant facts and circumstances: • On XX/XX/XXXX, you entered into a contract of sale for Houses and Residential Land (the Contract) with X (the Supplier) to purchase the property, also described as Title Reference ZZ (the Property) for the purchase price of over $XXXX. • The contract was silent on GST but states that it defaults to taxable in those circumstances. • The Supplier is only identified by name in the contract. There is no ABN or other identifying evidence. • The contract does not describe the vendor except by name. There is no ABN or other identifying evidence. • You did not purchase the Property from the Seller as part of a going concern. • You have been registered for GST from 20XX. • The Property comprises a dwelling with three bedrooms, a bathroom, and a kitchen while the remainder of the Property is vacant land which was used previously as a depot. • The supplier leased the Property under a commercial lease which expired in 20XX before you entered the contract with the Supplier. • The dwelling part of the property appears to be about one-third of the property and the remaining portion is the area once used for a depot. • The property is a single title. • The dwelling was used as an office for a truck depot. • You intend to develop the site into a mini-storage establishment pursuant to approvals sought with the relevant authority. • The residence has been demolished and the land cleared, however you did provide photos of the interior of the residence.

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