Private ruling: GST and the supply of real property as a gift
Date of advice: 4 October 2019
Published: November 2019
Ruling period: The period ending 30 June 2019 until the period ending 31 December 2019
Date scheme commenced: 1July 2019

Ruling: Q1: Is the supply of the real property to the recipient, a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: No.

Relevant facts and circumstances: · You (the transferor) are a registered charity and is endorsed as a Deductible Gift Recipient. · The recipient is a registered charity and is endorsed as a Deductible Gift Recipient. · You own the land in Certificate of Title Volume XX Folio XX (the land) on which there is constructed an established dwelling you will demolish prior to transfer. · Your primary activity is to raise funds for the purpose of providing High Care Residential Facilities for people with disabilities. · You entered into an Agreement with The recipient before XX Date whereby you will transfer to the recipient the land by donation and, as agreed, the recipient will construct a building on the land in which you will cease to have legal or beneficial ownership after you transfer it.

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 9-15 | A New Tax System (Goods and Services Tax) Act 1999 Section 9-17 | A New Tax System (Goods and Services Tax) Act 1999 Subsection 9-17(2)

Reasons for decision: Summary: You transferred land to the recipient in which you ceased to have any beneficial or legal ownership. There is an agreement which contained certain terms. None of those terms amounted to non-monetary consideration for the supply of the property.