Private ruling: GST - charities
Date of advice: 7 March 2025
Published: 19 May 2025
Date scheme commenced: DDMMYYYY

Ruling: Q1: Will the sub-lease of the Social Dwellings (as defined in the Head Lease) by Entity A to Entity B be a GST-free supply pursuant to section 38-250 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes, the sub-lease of the Social Dwellings (as defined in the Head Lease) by Entity A to Entity B will be a GST-free supply pursuant to section 38-250 of the GST Act provided that, using the proposed methodology in Question 3, the supply is for consideration that is less than 75% of the GST-inclusive market value of the supply. | Q2: Will the sub-lease of the Residential Premises (as defined in the Sub Lease) by Entity A to Entity C, be a GST-free supply of accommodation pursuant to section 38-250 of the GST Act? | A2: Yes, the sub-lease of the Residential Premises (as defined in the Sub Lease) by Entity A to Entity C will be a GST-free supply of accommodation pursuant to section 38-250 of the GST Act provided that, using the proposed methodology in Question 3, the supply is for consideration that is for less than 75% of the GST-inclusive market value of the supply. | Q3: For the purposes of the GST-free provisions in section 38-250 of the GST Act, does the Commissioner agree with the proposed method for determining the market value of the supplies made by Entity A of the Social Dwellings to Entity B under the Head Lease and the Residential Dwellings to Entity C under the Sub Lease? | A3: Yes, the Commissioner agrees with the proposed methodology for determining the market value of the supplies made by Entity A of the Social Dwellings to Entity B under the Head Lease and of the Residential Premises to Entity C under the Sub Lease. The scheme commenced on: DDMMYYYY

Relevant facts and circumstances: The applicant provided the relevant contracts which define the scheme.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-10 | A New Tax System (Goods and Services Tax) Act 1999 section 9-15 | A New Tax System (Goods and Services Tax) Act 1999 section 38-250 | A New Tax System (Goods and Services Tax) Act 1999 section 195-1