Private ruling: Goods and Services Tax: Supply of a going concern
Date of advice: 6 November 2015
Published: November 2015

Ruling: Q1: Will your supply of your premises be a GST-free supply of a going concern for the purpose of section 38-325 of the A New Tax System (Goods and Services Tax) Act 1999 ? | A1: Yes, your supply of the premises will be a GST-free supply of a going concern as: • on settlement date, you will be providing the purchaser all of the things that are necessary for the continued operation of a leasing enterprise, being the premises and the continuing lease agreement. • you will continue to carry on the leasing enterprise until the day of the supply • you and the purchaser have agreed in writing that the sale is a supply of a going concern • the sale is for consideration, and • the purchaser is registered for GST.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are registered for GST. You are the owner and developer of a premises of which you entered into a contract for sale (sale contract), subject to your successful completion of construction at the premises prior to settlement. At the time of entering the sale contract you and the purchaser agreed you would enter into a lease with a third party tenant prior to settlement of the property. That is, the purchaser would acquire possession of the premises subject to the lease to the tenant. You provided a copy of the sale contract which provides: • the supply will be for consideration • on settlement date, you will be providing the purchaser all of the things that are necessary for the continued operation of a leasing enterprise, being the premises and the continuing lease agreement • you will continue to carry on the leasing enterprise until the day of the supply • you and the purchaser have agreed in writing that the sale is a supply of a going concern • the sale is for consideration, and • the purchaser is registered for GST.

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 38-325