Private ruling: GST and the sale of property
Date of advice: 18 December 2018
Published: April 2019
Ruling period: 1 January 2017 to 31 March 2017

Ruling: Q1: Is the sale of a certain property an input taxed supply? | A1: Yes, since the property was rented out for five years continuously and not advertised for sale. | Q2: Does Division 142 of A New Tax System (Goods and Services Tax) Act 1999 (the GST Act) apply to prevent the refund of excess GST paid for the sale of the property? | A2: No, since the GST on the sale was not passed on.

Relevant facts and circumstances: You built a property then rented it out for more than 5 years continuously and did not advertise it for sale in that time. You subsequently sold the property and reported the sale as GST taxable because of a systems error. You considered the sale to be an input taxed supply at all times.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 Division 129 | A New Tax System (Goods and Services Tax) Act 1999 Division 142