Private ruling: Goods and services tax (GST) and sale of property
Date of advice: 13 October 2017
Published: March 2018

Ruling: Q1: Is GST payable on your sale of property A? | A1: No. Your projected GST turnover at the time of sale of property A will be zero. The sale of the property is excluded from the projected GST turnover calculation as it will be a sale of a capital asset. Individual X held property A as a capital asset, as they held it as a structural asset of their farming business. The factors in Miscellaneous Taxation Ruling MT 2006/1 were considered in determining that the land will remain a capital asset at the time of sale. As your projected GST turnover at the time of sale of property A will be less than $75,000, you will not be required to be registered for GST. As you are not registered or required to be registered for GST, GST is not payable on the sale of property A.

Relevant facts and circumstances: You are not registered for GST. Individual X died on (date). You are executing their will. You will sell property A which was owned by individual X. Property A is vacant land. Property A was part of the family property referred to as property B. Individual X and their late spouse carried on a farming business on this land. Property B was originally owned by individual X’s spouse (individual Y). Property A was purchased at a later date to property B. Individual X inherited property B on their spouse’s passing and continued to carry on the farming business on the land. You brought about a boundary change for property A in a certain year to give road access as it was landlocked behind property B. Council required the boundary change in order for property A to be sold. Individual X and their late spouse did not subdivide property B. You will not be selling any assets in the course of executing individual X’s will in, or after, the month of settlement of sale of property A other than property A.

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 23-5 | A New Tax System (Goods and Services Tax) Act 1999 Division 188


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