Private ruling: Sale of a going concern
Date of advice: 20 December 2019
Published: March 2020
Ruling period: From the tax period commencing 1 July 2018 and following.

Ruling: Q1: Is your sale of the business and business assets to the business purchaser, pursuant to the provisions of the proposed agreements, a GST-free supply or supplies of a going concern under Subdivision 38-J of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes. Where you sell the business and business assets pursuant to the provisions of the proposed agreements, the sales will qualify as a GST-free supply or supplies of a going concern under Subdivision 38-J of the GST Act.

Relevant facts and circumstances: You operate a large business and you wish to sell it in smaller units as separate enterprises. Each sale will be conducted on basis that a simultaneous supply of property, assets and a business will occur for each discrete sale.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 Section 9-20 | Section 38-325

Reasons for decision: Summary: The enterprises will be supplied such that they operate until settlement and all things necessary will be supplied to the recipient to conduct a business.