Document ID: chunk:federal_register_of_legislation:C2025C00126:section:7:p2
Version: federal_register_of_legislation:C2025C00126
Segment Type: section
Provision Reference: s 7 (pt 2/63)
Character Range: 248631–251156

which there are no improvements is GST‑free if:
 (a) the supply is of a freehold interest in the land; or
 (b) the supply is by way of *long‑term lease.
 (1A) A supply by the Commonwealth, a State or a Territory of land is GST‑free if:
 (a) the supply is of a freehold interest in the land, or is by way of *long‑term lease; and
 (b) the Commonwealth, State or Territory had previously supplied the land, by way of lease, to the *recipient of the supply; and
 (c) at the time of that previous supply, there were no improvements on the land; and
 (d) because conditions to which that lease was subject had been satisfied, the recipient was entitled to the supply of the freehold interest or the supply by way of long‑term lease.
 (2) However, the supply is not GST‑free if, since 1 July 2000, the land has already been the subject of a supply that is GST‑free under this section.

38‑450  Leases preceding grants of freehold and similar interests by governments
 (1) A supply by the Commonwealth, a State or a Territory of land on which there are no improvements is GST‑free if:
 (a) the supply is by way of lease (other than *long‑term lease); and
 (b) the lease is subject to conditions the satisfaction of which will entitle the *recipient of the supply to the grant of a freehold interest in the land or a long‑term lease of the land.
 (2) A supply consisting of the surrender, to the Commonwealth, a State or Territory, of a lease over land is GST‑free if:
 (a) the supplier acquired the land under a supply that:
 (i) was GST‑free under subsection (1); or
 (ii) if the supply was made before 1 July 2000—would have been GST‑free under subsection (1) if it had been made on or after that day; and
 (b) solely or partly in return for the surrender of the lease, the Commonwealth, State or Territory makes a supply of the land to the supplier that is GST‑free under section 38‑445.

Subdivision 38‑O—Farm land

38‑475  Subdivided farm land
 (1) The supply of a freehold interest in, or the lease by an *Australian government agency of or the *long term lease of, *potential residential land is GST‑free if:
 (a) the land is subdivided from land on which a *farming business has been *carried on for at least 5 years; and
 (b) the supply is made to an *associate of the supplier of the land without *consideration or for consideration that is less than the *GST inclusive market value of the supply.
 (2) An entity *carries on a farming business if it carries on a *business of:
 (a) cultivating or propagating plants, fungi