Private ruling: Sale of a going concern
Date of advice: 23 March 2018
Published: June 2018

Ruling: Q1: Are the supplies you make u nder a contract of sale GST-free as the supply of a going concern? | A1: Yes, the entity will be making a GST-free supply of a going concern.

Relevant facts and circumstances: You (the entity) lease land which you plan to develop in the future. You operate a car parking business on the land. You have appointed a Manager to operate the car park and maintain its fixtures. You have undertaken many activities and obtained various ongoing permissions in relation to the land with respect to the property development. You have entered a contract of sale (copy and related documents provided) which provides that all business equipment, leases, permissions and other obligations will be transferred (or arrangements will be made to ensure transfer) to the purchaser (who is registered for GST) on the date of settlement. The contract includes a clause stating the enterprise will be carried on until the date of sale. The enterprise will continue to operate before and after the sale.


Reasons for decision: Summary: The requirements of section 38-325 of the GST Act have been satisfied, namely: ● the supply is made for consideration ● the purchaser is registered for GST ● written agreement that the enterprise would continue until day of sale ● all things necessary for the continued operation of the enterprise were supplied, and ● the enterprise was effectively carried on until the date of supply.