Private ruling: GST and enterprise
Published: July 2017

Ruling: Q1: Are your supplies of specified properties taxable supplies under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: No, your supplies of specified properties are not taxable supplies under section 9-5 of the GST Act. Your sales are not in the course or furtherance of an enterprise and therefore are not taxable supplies.

Relevant facts and circumstances: You (specified persons) are not registered for GST. You are not registered for GST individually nor as a partnership. You originally purchased the land on ddmmyy and built the family home on it. The property is located at a specified address. The land in total is a specified area and your family lived on this property since then. You did not purchase the land with the intention of resale at a profit. You are considering subdividing the land into a few blocks. You propose to sell two vacant blocks of land. In addition, you intend to sell the two blocks of land immediately after the subdivision is completed. You will retain the block with the dwelling as your principal place of residence. The two subdivided blocks will be specified area each. There are no buildings on the land to be subdivided and sold, except for the existing home. You are not engaged in the business of subdivision of land, and have not previously conducted a subdivision of land. You will be carrying out as much of the work as you can instead of engaging professionals. You intend doing the minimum amount of work in order to satisfy development approval. The land will be listed with a real estate agent for an arm's length sale. You do not carry on any other enterprise either individually or as a partnership.

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 paragraph 9-5(a) | A New Tax System (Goods and Services Tax) Act 1999 paragraph 9-5(c) | A New Tax System (Goods and Services Tax) Act 1999 section 9-20 | A New Tax System (Goods and Services Tax) Act 1999 section 9-40