Document ID: chunk:federal_register_of_legislation:C2004A00749:clause:1_7
Version: federal_register_of_legislation:C2004A00749
Segment Type: clause
Provision Reference: sch 1 cl 7
Character Range: 6113–7661

7  At the end of Subdivision 38‑N
Add:

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.

 8  After subsection 40‑35(1)
Insert:

 (1A) A supply of a berth at a marina that is by way of lease, hire or licence (including a renewal or extension of a lease, hire or licence) is input taxed if:
 (a) the berth is occupied, or is to be occupied, by a *ship used as a residence; and
 (b) the supply is of *commercial accommodation and Division 87 (which is about long‑term accommodation in commercial premises) would apply to the supply but for a choice made by the supplier under section 87‑25.