Private ruling: GST - sale of property
Date of advice: 29 October 2025
Published: 15 December 2025
Ruling period: 29 October 20YY to 29 October 20YY
Date scheme commenced: 29 October 20YY

Ruling: Q1: Is the sale of the property a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 ? | A1: No, the sale of the property is not a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 . The sale is not subject to GST withholding.

Relevant facts and circumstances: An individual bought the property. The individual was the sole legal owner of the property. The property has always been on a single property title. The property is vacant land. The individual was not carrying on any business or enterprise in relation to the property. The individual was not registered for GST. The individual passed away. The legal title of the property has not been transferred to anyone. That is, the property is an asset of the Deceased Estate. You are the Executors of the Deceased Estate (the Executors / you). The Executors, in their capacity as Executors, are not registered for GST. You have not done anything with the property. You will not conduct any development or other activities in respect of the property prior to its sale.

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

Reasons for decision: Summary: All references are to the GST Act, unless otherwise stated. GST is payable on taxable supplies. Section 9-5 of the GST Act provides that you make a taxable supply if: (a) you make the supply for consideration (b) the supply is made in the course or furtherance of an enterprise that you carry on (c) the supply is connected to the indirect tax zone, and (d) you are registered or required to be registered for GST. However, the supply is not a taxable supply to the extent that it is GST-free or input taxed. Under subsection 184-1(3), a person can have a number of different capacities in which the person does things. In each of those capacities, the person is taken to be a different entity for GST purposes. For example, where an individual is the trustee of a trust, they are a different entity to in their personal capacity as an individual. The executor of a deceased estate is a trustee of the deceased estate trust. The sale of the property will meet the requirements of paragraphs 9-5 (a) and (c) because the sale will be a supply made for consideration and the property is located in the indirect tax zone (Australia). Therefore, to determine if the sale of the property will be a taxable supply, we need to determine whether paragraphs 9-5 (b) and (d) will be met. | Detailed Reasoning - Are the Executors carrying on an enterprise?: You are not registered for GST. You may be required to be registered for GST if, among other things, the sale of the property is considered to be made in the course or furtherance of an enterprise that you carry on. Section 9-20 provides that an enterprise is, among other things, an activity, or series of activities, done in the form of a business, or in the form of an adventure or concern in the nature of trade. There is no commercial activity involved with the property. Therefore, you are not carrying on a business in respect of the property. The use of the words 'in the form of' in the definition of 'enterprise' has the effect of extending its meaning beyond entities carrying on a business or an adventure or concern in the nature of trade. Miscellaneous Taxation Ruling MT 2006/1 The New Tax System: the meaning of entity carrying on an enterprise for the purposes of entitlement to an Australian Business Number (MT 2006/1) provides guidance on the meaning of the term 'enterprise' for GST purposes. According to MT 2006/1, an adventure or concern in the nature of trade includes a commercial activity that does not amount to a business, but which has the characteristics of a business deal. Isolated or one-off transactions will fall into this category. MT 2006/1 discusses isolated transactions and sales of real property. At paragraph 265, it presents a list of factors which, if present, may be an indication that a business or an adventure or concern in the nature of trade is being carried on. Those factors are: • there is a change of purpose for which the land is held • additional land is acquired to be added to the original parcel of land • the parcel of land is brought into account as a business asset • there is a coherent plan for the subdivision of the land • there is a business organisation - for example a manager, office, and letterhead • borrowed funds financed the acquisition or subdivision • interest on money borrowed to defray subdivisional costs was claimed as a business expense • there is a level of development of the land beyond that necessary to secure council approval for the subdivision, and • buildings have been erected on the land. These factors must be considered as a whole to assess the isolated nature of the activities to determine whether they may be business-like. In your case, your activities show no indication of carrying on an enterprise in respect of the property. Therefore, it is not considered that the one-off supply made from the sale of the property would be made in the course or furtherance of an enterprise, rather it would be a private sale. As such, you will not be making a taxable supply.