Private ruling: GST and the sale of subdivided vacant land lots
Date of advice: 29 August 2025
Published: 27 October 2025
Ruling period: XX/XX/2025 to XX/XX/2029
Date scheme commenced: XX/XX/2025

Ruling: Q1: Will you make a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when you sell your subdivided vacant land lots? | A1: No, your sale of subdivided vacant land lots will not be a taxable supply under section 9-5 of the GST Act as you are not registered, nor required to be registered, for GST.

Relevant facts and circumstances: You, X, are a complying superannuation fund. We issued your notice of compliance on XX/XX/20XX with an effective date of XX/XX/20XX. You are not registered for GST. You have never been registered for GST. Your income for the current month and past 11 months consists of input-taxed supplies and supplies for which there is no consideration. Your investment strategy is tailored for the circumstances of your members. Your investment objectives are to achieve steady growth by investing in X and X. You have owned X properties since you were established. You retain ownership of one property. You acquired 'the Property' from a third-party on DD/MM/20XX. There was no GST on this purchase. The Property was rented out to third-party tenants until XX/XX/20XX when the Property was damaged due to X and declared uninhabitable. You demolished the Property on XX/XX/20XX. It has remained vacant since this date. You conducted a verbal assessment to compare your options of constructing a new property on the vacant land or subdividing the vacant land into two lots. You decided to proceed with the subdivision option due to the risks of rebuilding outweighing the reward. You engaged third-party professionals to carry out the subdivision of the Property into two separate vacant residential land lots (the Subdivided Lots). You did not physically perform any of the subdivision activities outside of engaging and organising the professionals. Your engaged professionals carried out necessary activities to legally subdivide the lot. Your approved application for subdivision was registered in XX 20XX. Titles for the Subdivided Lots were subsequently issued. You financed the subdivision activities from your own assets. You did not seek external lending. You did not purchase any additional land as part of your subdivision activities. You will not purchase any additional land or expand your subdivision activities. You will engage a third-party real estate agent to market and dispose of the Subdivided Lots. You will not retain ownership of any part of the Subdivided Lots. You will not use the Subdivided Lots for any activity other than subdivision activities before they are disposed of. Your income for the current month and next 11 months will not change from the current month and previous 11 months aside from the planned sale of the Subdivided Lots.

Relevant legislative provisions: A New Tax System (Goods and Service Tax) Act 1999 section 9-5 | A New Tax System (Goods and Service Tax) Act 1999 section 9-40 | A New Tax System (Goods and Service Tax) Act 1999 section 23-5 | A New Tax System (Goods and Service Tax) Act 1999 section 23-15 | A New Tax System (Goods and Service Tax) Act 1999 section 188-10 | A New Tax System (Goods and Service Tax) Act 1999 section 188-15 | A New Tax System (Goods and Service Tax) Act 1999 section 188-20 | A New Tax System (Goods and Service Tax) Act 1999 section 188-25 | A New Tax System (Goods and Service Tax) Act 1999 section 195-1 | Income Tax Assessment Act 1997 section 995-1 | Superannuation Industry (Supervision) Act 1993 section 45

Reasons for decision: Summary: In these reasons for decision: • 'GST Act' refers to A New Tax System (Goods and Services Tax) Act 1999 • 'GST Regulations' refers to A New Tax System (Goods and Services Tax) Regulations 2019 . You are liable for GST under section 9-40 of the GST Act if you make a taxable supply. You make a taxable supply if you satisfy all criteria in section 9-5 of the GST Act: (a) you make the supply for consideration; and (b) the supply is made in the course or furtherance of an enterprise that you carry on; and (c) the supply is connected with the indirect tax zone; and (d) you are registered, or required to be registered. We will address all 4 criteria in turn. Subsection 9-5(b) of the GST Act requires that you make your supply for consideration. Consideration, as under section 9-5 of the GST Act, includes any payment in connected with a supply of anything. You have subdivided 'the Property' into two separate vacant residential land lots (the Subdivided Lots). When you sell the Subdivided Lots to a third-party, you will receive consideration in the form of money. This satisfies the requirement of subsection 9-5(a) of the GST Act. Subsection 9-5(b) of the GST Act requires that the sale of the Subdivided Lots be done in the course or furtherance of an enterprise that you carry on. A complying superannuation fund is deemed an enterprise as per section 9-20(da) of the GST Act. You are a complying superannuation fund as we issued you a notice of compliance on XX/XX/20XX effective XX/XX/20XX. You satisfy the requirements of subsection 9-5(b) of the GST Act. Subsection 9-5(c) of the GST Act requires that the supply you make be connected with the indirect tax zone. The indirect tax zone is defined in section 195-1 of the GST Act to include mainland Australia. As the sale of the Subdivided Lots will occur within mainland Australia, it is connected with the indirect tax zone for the purposes of subsection 9-5(c) of the GST Act. Subsection 9-5(d) of the GST Act requires that you either be registered for GST or be required to be registered for GST. You are not registered for GST nor have you ever been. You are required to be registered for GST if you satisfy the requirements of section 23-5 of the GST Act: (a) you are carrying on an enterprise; and (b) your GST turnover meets the registration turnover threshold. You satisfy the requirement under subsection 23-5(a) of the GST Act as you are a complying superannuation fund and therefore are carrying on an enterprise. You will satisfy subsection 23-5(b) of the GST Act if your GST turnover meets the GST registration turnover threshold (registration threshold). How you meet the registration threshold is found within paragraph 188-10(3)(b) of the GST Act in conjunction with subsection 188-10(1) of the GST Act. You exceed the registration threshold and be required to register for GST if: a) Your GST turnover is at or above the registration threshold, and we are not satisfied that your projected GST turnover will be below it; or b) Your projected GST turnover is at or above the registration threshold. You are not a non-profit body. Your GST turnover registration threshold under paragraph 23-15(1)(b) of the GST Act is $75,000, as specified in regulation 23-15.01 of the GST Regulations. Current GST turnover is defined in section 188-15 of the GST Act as the value of your supplies made in the current month and the previous 11 months, other than: a) Supplies that are input taxed b) Supplies that are not for consideration c) Supplies that are not made in connection with an enterprise that you carry on. Projected GST turnover is defined in section 188-20 of the GST Act as the value of your supplies made in the current month and the next 11 months, other than: a) Supplies that are input taxed b) Supplies that are not for consideration c) Supplies that are not made in connection with an enterprise that you carry on. The types of income you have received over the course of the current month and the previous 11 months are input taxed or supplies for which there is no consideration. Your current GST turnover does not meet or exceed the registration threshold. The types of income that you expect to receive over the current month and next 11 months will not change except for the sale of the Subdivided Lots. The proceeds that you receive will be disregarded for the purposes of calculating your GST turnover if the requirements of section 188-25 of the GST Act are met. In working out your projected GST turnover, disregard: (a) any supply made, or likely to be made, by you by way of transfer of ownership of a capital asset of yours; and (b) any supply made, or likely to be made, by you solely as a consequence of: (i) ceasing to carry on an enterprise; or (ii) substantially and permanently reducing the size or scale of an enterprise. What needs to be considered is whether your sale of the Subdivided Lots is a mere transfer of ownership of a capital asset, or something more. This requires understanding your circumstances and intentions. Your investment strategy was developed with consideration of factors about your members. It is not that of a property development enterprise. You derived rental income from residential property. You purchased the Property on XX/XX/20XX and have rented it out to tenants since that time. You ceased renting it out only once the Property became uninhabitable due to damage. There is no evidence that it was your intention at the time of purchase to subdivide the Property. However, as was considered in Collins & Anor ATF The Collins Retirement Fund v Commissioner of Taxation [2022] AATA 628 ( Collins ), your intention at the time of purchase is less relevant than at the time of sale. Consideration needs to be had as to why you undertook subdivision. You chose not to build a new home on the vacant land as there was greater risk for your circumstances. This is consistent with your investment strategy. Further, as in Collins , while the absence of your direct involvement in site activities is not determinative, the professional contractors and parties that you engaged were minimal. You undertook the necessary activities of subdivision. Therefore, the sale of the Subdivided Lots is a transfer of ownership of a capital asset. No proceeds will be included in calculating your projected GST turnover. You will not be required to be registered for GST and the sale of the Subdivided Lots will not be a taxable supply under section 9-5 of the GST Act.