Private ruling: Is the sale of land a GST-free sale of farmland?
Date of advice: 17 May 2019
Published: July 2019

Ruling: Q1: Is the sale of land by Entity A GST-free under section 38-480 of A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes. The sale of land is GST-free under section 38-480 of the GST Act.

Relevant facts and circumstances: Entity A owns land upon which it allows another entity to carry on a farming business (as per section 38-475 of the GST Act). This activity has been carried on for more than five years and will continue after settlement of the sale of the land.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 38475 | A New Tax System (Goods and Services Tax) Act 1999 section 38-480

Reasons for decision: Summary: Since the relevant facts and circumstances satisfy the two limbs of section 38-480, the sale of the land in question will be a GST-free sale of farmland as per section 38-480.