Private ruling: Compulsory acquisition of land
Date of advice: 19 December 2018
Published: April 2019

Ruling: Q1: Is the taking of the interests in land being resumed under and in accordance with section 15 of the Acquisition of Land Act 1967 (Qld) a taxable supply for GST purposes? | A1: No.

Relevant facts and circumstances: ● You are registered for GST. ● Your interests in land are being resumed by the State government via notices of intention to resume. ● You have not taken any positive action to make a supply of your interests in land; you did not initiate the process and you did not provide anything or take any action to cause your interests to be taken by or surrendered to the State government.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 (GST Act) Section 9-5 | Section 9-10.

Reasons for decision: Summary: As your interests in land are being taken via statute and you did not provide anything or take any action to cause your interests to be transferred or surrendered to the State government, you are not making a supply within the meaning of section 9-10 of the GST Act. As you are not making a supply, the requirements of section 9-5 of the GST Act for there to be a taxable supply (in particular paragraph 9-5(a) of the GST Act) will not be satisfied. Consequently, you will not be liable for GST in relation to your interests in land being compulsorily acquired by the State government.