Private ruling: Goods and services tax and farm land
Date of advice: 8 October 2015
Published: November 2015

Ruling: Q1: Is the sale of specified property a GST-free supply under section 38-480 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? Answer Yes. The land is land on which a farming business has been carried on for at least the period of 5 years preceding the supply. In addition, the recipient of the supply intends that a farming business be carried on, on the land.

Relevant facts and circumstances: You are registered for Goods and Services Tax (GST). The property is a vacant lot. The specified person maintained animals for the purpose of selling them or their bodily produce (including natural increase). For a number of years up until specified date and for more than five years preceding specified date, specified person carried on a specified enterprise on the property. The properties were dormant at all relevant times on and after specified date. The Property was sold at on specified date as vacant land. The purchaser intends to use the property as farming land, specifically for the grazing of animals. The purchaser intends to maintain animals for the purpose of selling them or their bodily produce (including natural increase).

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 Section 9-20 | A New Tax System (Goods and Services Tax) Act 1999 Section 38-480 | A New Tax System (Goods and Services Tax) Act 1999 s ection 195-1