Document ID: chunk:federal_register_of_legislation:C2025C00126:section:7:p7
Version: federal_register_of_legislation:C2025C00126
Segment Type: section
Provision Reference: s 7 (pt 7/63)
Character Range: 260920–263817

entitled to a credit for that payment under section 18‑60 in that Schedule.

40‑70  Supplies of residential premises by way of long‑term lease
 (1) A supply is input taxed if:
 (a) the supply is of *real property but only to the extent that the property is *residential premises to be used predominantly for residential accommodation (regardless of the term of occupation); and
 (b) the supply is by way of *long‑term lease.
 (2) However, the supply is not input taxed to the extent that the *residential premises are:
 (a) *commercial residential premises; or
 (b) *new residential premises other than those used for residential accommodation (regardless of the term of occupation) before 2 December 1998.

40‑75  Meaning of new residential premises

When premises are new residential premises
 (1) *Residential premises are new residential premises if they:
 (a) have not previously been sold as residential premises (other than *commercial residential premises) and have not previously been the subject of a *long‑term lease; or
 (b) have been created through *substantial renovations of a building; or
 (c) have been built, or contain a building that has been built, to replace demolished premises on the same land.
Paragraphs (b) and (c) have effect subject to paragraph (a).
Note 1: For example, residential premises will be new residential premises if they are created as described in paragraph (b) or (c) to replace earlier premises that had ceased to be new residential premises because of paragraph (a).
Note 2: However, premises that are new residential premises because of paragraph (b) or (c) will cease to be new residential premises once they are sold, or supplied by way of long‑term lease, as residential premises (see paragraph (a)).
Note 3: Premises created because of the registration of, for example, a strata title plan, or a plan to subdivide land, may not become new residential premises (see subsection (2AA)).
 (2) However, the *residential premises are not new residential premises if, for the period of at least 5 years since:
 (a) if paragraph (1)(a) applies (and neither paragraph (1)(b) nor paragraph (1)(c) applies)—the premises first became residential premises; or
 (b) if paragraph (1)(b) applies—the premises were last *substantially renovated; or
 (c) if paragraph (1)(c) applies—the premises were last built;
the premises have only been used for making supplies that are *input taxed because of paragraph 40‑35(1)(a).

Subdivisions etc. may not result in new residential premises
 (2AA) Despite subsection (1), the *residential premises are not new residential premises if:
 (a) they are created from residential premises that became the subject of a *property subdivision plan; and
 (b) the residential premises referred to in paragraph (a) were not new residential premises immediately before they became the subject of that plan.
This subsection has effect