Private ruling: Goods and Services Tax (GST) and donations
Date of advice: 16 November 2017
Published: April 2018
Ruling period: 1 July 2016 to 30 June 2017

Ruling: Q1: Does your donation of real property to X have any GST consequences? | A1: No. Your donation of real property to X constitutes a gift in accordance with Goods and Services Tax Ruling GSTR 2012/2 Goods and services tax: financial assistance payments and Taxation Ruling TR 2005/13 Income tax: tax deductible gifts - what is a gift because: ● there is a transfer of a beneficial interest in property; ● the transfer is made voluntarily; ● the transfer arises by way of benefaction; and ● no material benefit or advantage is received by the giver (payer) by way of return. As gifts to a non-profit body are not consideration for a supply, your donation of real property is not a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 and GST does not apply.

Relevant facts and circumstances: You are a company registered for GST. You are in the business of selling vacant/subdivided land. You donated real property to X which is registered as a charity with the Australian Charities and Not-for-profits Commission. You: ● are not an associate of X, ● received no consideration, monetary or otherwise, for the transfer of the real property, ● made the transfer voluntarily, ● received no material benefit or advantage from X, ● did not express or imply any pre-conditions for the transfer, and ● donated the real property simply by way of benefaction.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-5