Private ruling: GST and going concern
Date of advice: 18 November 2015
Published: February 2016

Ruling: Q1: Will the supply of your property constitute a supply of a going concern for the purposes of subsection 38-325(2) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes, if at the time of the settlement the supply satisfies the requirements of subsection 38-325(2) of the GST Act. That is, at settlement, you provide the Purchaser all of the things that are necessary for the continued operation of the leasing enterprise, being the Property and the continuing periodic lease agreement. In addition you will carry on the leasing enterprise until the day of the supply.

Relevant facts and circumstances: You are registered for GST. You own property situated at a specified location (the Property). The Property includes a residence and associated shedding. The Property is currently leased to an unrelated party on a commercial lease. There is a continuing periodic lease agreement. You are considering an offer from a developer who is registered for GST and has not requested vacant possession. The proposed contract with be in the form of a put and call option. The current tenant will continue to lease the premises under the existing expired lease with the potential buyer after the sale has been completed.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 Subsection 38-325(2)