Private ruling: GST and supply of land
Date of advice: 11 December 2015
Published: February 2016

Ruling: Q1: Will the subdivision and sale of your Land be a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: No. GST is payable on any taxable supply that you make. The requirements of a taxable supply under section 9-5 of GST Act include that the supply is in the course or furtherance of an enterprise that you carry on and you are registered or required to be registered for GST. We do not consider that the subdivision and sale of the Land amounts to the carrying on of an enterprise as defined in section 9-20 of the GST Act As you are not carrying on an enterprise in relation to this activity, you are not required to be registered for GST. Therefore, the sale of the Land will not be a taxable supply.

Relevant facts and circumstances: • You and your spouse acquired land and buildings on or about DDMMYYYY. • The share of the property held by your spouse was transferred to you upon divorce in approximately YYYY. • The property has not been rented at any time, being used wholly and exclusively used as your private residence. • Six lots have been created through subdivision. • You have not borrowed funds at any stage, using personal funds to undertake the subdivision and do not anticipate requiring any bank funding. • You intend to appoint surveyors to project manage the total project/development. They will be responsible for engaging and organising all contractors and you will have minimal involvement. • You have no business organisation, no manager, no office, no secretary, and no letterhead. • There is no site office or any other buildings erected on the land other than the family home and its outbuildings. • You intend to carry out the absolute minimum amount of clearing and earth works as required by statutory bodies. There will be no buildings/structures of any type constructed by you. • You have listed the lots with a local agent. • You will not actively be involved with the sale and or marketing of the lots. • You have not subdivided and developed other properties in the past. • You are not registered for GST.

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 9-20, and | A New Tax System (Goods and Services Tax) Act 1999 Section 9-40.