Private ruling: GST - the sale of land
Date of advice: 13 December 2023
Published: 5 February 2024
Ruling period: 1 July 2023 to 30 June 2027
Date scheme commenced: The date of issue of this private ruling

Ruling: Q1: Will the supply of vacant land to a developer be a taxable supply under s9-5 of the A New Tax System (Goods and Services Tax) Act 1999 ? | A1: No. The land is not supplied in the course or furtherance of an enterprise. As such, it is not a taxable supply.

Relevant facts and circumstances: You purchased the property in the XX's. Neither entity is registered for GST. At the time of purchase, there was only a shed on the property. The vacant land has not been used for any purpose since purchase. There have been no improvements to the property since purchase. There have been no activities undertaken by the owners with respect to the property. The margin scheme was not used at the time of purchase being prior to 1 July 2000. You do not intend to use the margin scheme. Neither owner have been involved in any sub-divisions in the past. You will not be subdividing the land for sale.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-5