Private ruling: GST - sale of vacant land
Date of advice: 1 May 2026
Published: 13 July 2026
Ruling period: XX/XX/20XX to XX/XX/20XX
Date scheme commenced: XX/XX/20XX

Ruling: Q1: Will you make a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when you sell the vacant land? | A1: No. Your sale of the vacant land will not be a taxable supply under section 9-5 of the GST Act because it will not be made in the course or furtherance of an enterprise that you carry on, and you are not registered, or required to be registered, for GST.

Relevant facts and circumstances: You have never held an ABN or been registered for GST. Your acquired the vacant land with the intention of holding it as a long-term investment asset. You have held the vacant land passively. The vacant land is your only asset other than minor other assets. There have been recent regulatory changes which affect your vacant land. You are selling the vacant land as you are looking to be wound up. The vacant land will be sold at market value.

Relevant legislative provisions: 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

Reasons for decision: Summary: A supply is a taxable supply under section 9-5 of the GST Act 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 supply is not a taxable supply to the extent that it is GST-free or input taxed. You will satisfy subsections (a) and (c) of section 9-5 of the GST Act because you will receive consideration from the sale of the Vacant Land and the supply will be connected with the indirect tax zone. No GST-free or input taxed provision applies. As such, the remaining issues are whether the sale will be made in the course or furtherance of an enterprise that you carry on, and whether you are registered, or required to be registered, for GST. | Detailed Reasoning - Course or furtherance of an enterprise: Section 9-20 of the GST Act provides that an enterprise includes activities done in the form of a business or done in the form of an adventure or concern in the nature of trade. Our views on the meaning of 'carrying on an enterprise' are set out in 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). Although MT 2006/1 concerns the Australian Business Number framework, those views apply equally for GST purposes through 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? . Paragraphs 170 to 176 of MT 2006/1 describe the expression 'in the form of a business' as widening the enquiry beyond the concept of 'carrying on a business'. Relevant indicators include purpose and intention, the degree of organisation, scale, repetition, and whether the activities resemble ordinary trade practices. Paragraphs 234 to 244 explain that isolated transactions may amount to an adventure or concern in the nature of trade, but that the fact an asset is sold for a profit is not sufficient to give the activities a business or commercial character. You acquired the vacant land with the intention of holding it as a long-term capital asset and have held it passively since. This is not consistent with an enterprise. Therefore, you are not carrying on an enterprise under section 9-20 of the GST Act. Your supply will not be a taxable supply as you do not meet subsection 9-5(b) of the GST Act. For completeness, we have considered whether you are registered or required to be registered for GST. | Detailed Reasoning - Registered, or required to be registered, for GST: A supply is only taxable under section 9-5 of the GST Act if you are registered, or required to be registered, for GST. You are not registered. Under section 23-5 of the GST Act, you are required to be registered if you are carrying on an enterprise. You are not carrying on an enterprise in relation to the vacant land. Therefore, you are not required to be registered for GST. | Detailed Reasoning - Conclusion: You will not make a taxable supply under section 9-5 of the GST Act because the sale will not be made in the course or furtherance of an enterprise that you carry on, and you are not registered, or required to be registered, for GST.