Private ruling: GST and sale of real property
Date of advice: 24 February 2016
Published: April 2016

Ruling: Q1: Is the sale of one allotment of vacant land subdivided from a main residence subject to GST? | A1: No. You will not be making a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). This is because based on the information provided, the sale of the subdivided land, will be the mere realisation of a private asset. Hence, the sale will not be made in the course or furtherance of an enterprise that you carry on.


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 paragraph 9-5(a). | A New Tax System (Goods and Services Tax) Act 1999 paragraph 9-5(b). | A New Tax System (Goods and Services Tax) Act 1999 paragraph 9-5(c). | A New Tax System (Goods and Services Tax) Act 1999 paragraph 9-5(d). | A New Tax System (Goods and Services Tax) Act 1999 section 9-20.


Relevant facts: You own the property located in Australia. | You purchased the property a few years ago and only used the property as your main residence. | The property is a large allotment and you intend to subdivide the land to segregate the area that you do not use. You will retain the lot that contains your house and you will continue to use it as your main residence. You intend to sell the proposed new vacant lot. | You will only do the minimum required by Council to obtain the separate titles. At this stage, the costs would include surveying, fencing and maybe electricity and water installation. You do not intend to do any other works. You will fund the subdivision costs from your own savings. | You are not currently carrying on any enterprise and you are not registered for GST.