Private ruling: GST and sale of government land
Date of advice: 4 September 2015
Published: September 2015

Ruling: Q1: Will the supply of the Relevant Land be GST-free pursuant to section 38-445 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes. The supply of the Relevant Land will be a supply, by a State, of a freehold interest in land on which there are no improvements. Further, the land has not already been the subject of a supply that is GST-free under section 38-445 of the GST Act. Therefore the supply of the Relevant Land will be GST-free pursuant to section 38-445 of the GST Act.

Relevant facts and circumstances: Entity A holds the freehold interest in the Land, and is negotiating the sale of the Land to Entity B. The Parties intend to execute a contract of sale (Land Contract) in the near future. Entity A was established as a body corporate under the relevant legislation. Entity B was established as a body corporate under other relevant legislation. Both entities are currently registered for GST. The Relevant Land The Relevant Land is covered with grassy areas with low level scrub and some trees. It is consistent with nearby undeveloped land that is subject to an environmental report, due to potential native grassland significance. Land The following human interventions have taken place on (or in the vicinity of) the Relevant Land: • external fencing • channel fencing • hardstand areas The following human interventions are located outside of the boundary of the Relevant Land: • external fencing • channel fencing The concrete hardstand areas (used to park heavy vehicles for significant periods of time) were installed during the construction of a major road in the early 1990's. The hardstand areas have not been maintained or utilised since 1995. They do not provide a means of access across the Relevant Land, nor were they used for any purpose since the major road was completed. The hardstand areas have become dilapidated, to the point where it is not economical to repair them. Documentation and photos have been provided in support of the private ruling application.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 Section 38-445