Private ruling: GST and sale of property
Date of advice: 6 August 2015
Published: August 2015

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

Relevant facts and circumstances: You are registered for GST. You own the Property. You have contracted to sell the Property. The purchaser is registered for GST. The general GST clause (front page of the contract) states that the sale is the sale of a going concern under section 38-325. You will continue to lease the Property until the day of the supply.

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