Private ruling: Whether GST will be payable on the sale of real property
Date of advice: 8 July 2016
Published: August 2016

Ruling: Q1: Will GST be payable if the current owners sell real property located in Australia (property)? | A1: No. GST will not be payable because the sale of the property will not be a taxable supply. Section 9-5 of A New Tax System (Goods and Services Tax) Act 1999 (GST Act) states that a supply is not a taxable supply to the extent that it is GST-free or input taxed. The sale of the property will be an input taxed supply under section 40-65 of the GST Act because it is the sale of residential premises that are not: • commercial residential premises, or • new residential premises.

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. The taxpayers (owners) own real property which is a dwelling on land located in Australia (property). The property was purchased by the current owners with settlement on a date in 200X. When the current owners purchased the property it included the dwelling that is on the property currently. The dwelling has not been substantially renovated since the property was purchased. The whole property has been leased as residential premises since purchased. The property has not been used for any business operations since purchased.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 • Section 9-5 Taxable supplies | • Section 40-65 Sales of residential premises | • Section 40-75 Meaning of new residential premises