Private ruling: GST and the sale of property
Date of advice: 9 February 2016
Published: April 2016

Ruling: Q1: Will your supply of the property be a GST-free supply of a going concern pursuant to section 38-325 of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act)? | A1: Yes, as your supply of the Property will satisfy the requirements of subsections 38-325(1) and 38-325(2) of the GST Act, it will be a GST-free supply of a going concern.

Relevant facts and circumstances: You are registered for GST You own the property. The property is comprised of several retail stores, kiosks and ATMs, which are leased to various tenants. 1 store and 1 kiosk are currently vacant. Tenants are being sought for these. You are selling the Property to the Purchaser for $XXXX. The Purchaser is registered for GST. Contract of sale Under clause x.x, the Property is sold subject to the New Lease to the major tenant, which commenced on ddmmyyyy. Under clause x.x, the Property is sold subject also to the minor tenancies - as detailed in the Tenancy Schedule (which you provided). Under clause x.x, the parties agree that the supply of the Property is a GST-free supply of a going concern.

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