Private ruling: Goods and services tax - requirement to be registered
Published: November 2014

Ruling: Q1: Are you required to be registered under section 23-5 of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act)? | A1: No, you are not required to be registered under section 23-5 of the GST Act because your GST turnover does not meet the registration turnover threshold. This is because the sale of the properties is excluded from the projected GST turnover pursuant 188-25 of GST Act.

Relevant facts and circumstances: You are a partnership and not registered for goods and services tax (GST). In addition, you are the owner of several properties. You reside at a specified property. The area outside the brick fence is used by a specified entity to carry on a nursery enterprise. There are large sheds in the nursery area. There are also steel structures covered by shade cloth in the nursery area. The plants are housed in these steel structures. There is an office administration building within the nursery area. The house at this address was originally built before you acquired the property. However, you had undertaken some renovation to the existing house. In addition, you constructed the office administration building subsequent to your purchase of the property. Similarly your property at a specified address contains sheds and steel structures. A specified entity carries on a nursery enterprise on these premises. There is no house on these premises. Your property at a specified address contains sheds and steel structures. A specified entity carries on a nursery enterprise on these premises. There is a house on these premises but it is not occupied. You acquired the property with a house on it. You lease the three properties to a specified entity in order for that entity to carry out a nursery enterprise. A part of the three properties is not leased to a specified entity. Each of the three properties has been leased to a specified entity from the time you acquired them. The total annual rent charged for the three properties is a specified amount. You are not in the business of developing and selling residential lots. The three parcels of land are held as capital assets for income tax purposes. You do not carry on any enterprise of any kind, other than the rental of the premises, as described in your application for a ruling.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 23-5