Private ruling: GST and real property
Date of advice: 16 October 2020
Published: November 2020

Ruling: Q1: Is the supply of the Property by the Vendor to the Purchaser, a taxable supply pursuant to section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 ? | A1: No. The sale of the Property is an input taxed supply of residential premises to be used predominantly for residential accommodation. No GST is payable on the sale of the Property.

Relevant facts and circumstances: On ddmmyyyy, the Purchaser entered into a contract to acquire the Property from the Vendor. The Purchaser is not registered for GST. The Vendor had operated a retirement village from the Property. A Retirement Village Notice and Statutory Charge was registered on the property. The property had been operated pursuant to Licences to Occupy at a fee since the 19xx's. The last person occupying the property vacated on ddmmyyyy. The Vendor has not used the property as a retirement village since the last resident was relocated from the premises, nor has the property been occupied as dwelling since ddmmyyyy. The Retirement Village Notice and Statutory Charge was removed on ddmmyyyy. The Property will be supplied with vacant possession. The sale contract settles on ddmmyyyy. The Vendor is a deductible gift recipient and registered as a charity under the Australian Charities and Not-For-Profits Commission Register. The Vendor is registered for GST. The Property is a two storey complex comprising x, 1 bedroom one bathroom units each with a kitchen and dining room. There were no common rooms for residents to meet in or eat from and no on site caretaker facilities.

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 9-40 | A New Tax System (Goods and Services) Tax Act 1999 Section 40-65 | A New Tax System (Goods and Services) Tax Act 1999 Section 195