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Is the sale of the Property with the lease intact a GST-free supply of a going concern under section 38-325 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Yes. Based on the information provided, the sale of the Property with the lease intact to the Purchaser is a GST-free supply of a going concern as it meets all the requirements of section 38-325 of the GST Act as follows: •         you sold the Property for consideration •         the Purchaser has been registered for GST since ddmmyyyy •         you and the Purchaser agreed in writing that the supply is of a going concern •         you sold the Property to the Purchaser with the lease intact, and •         you carried on the leasing enterprise until the date of settlement. This ruling applies for the following period : ddmmyyyy to ddmmyyyy

You purchased the Property on a specified date. The sale of the Property to you was treated as a taxable supply on which GST was paid without applying the margin scheme. The Property was a vacant land with no existing structures or developments other than a fence surrounding the land. The land size is X sqm. You acquired the Property with the intention to develop residential units on the Property. A Planning Permit was granted on a specified date for development of the residential units. On a specified date, you and the Purchaser executed a contract for the sale of the Property (Contract) under which you were to sell the Property to the Purchaser. The Contract includes the following relevant terms and conditions: •         The Purchaser purchases the Property subject to the lease granted pursuant to the Contract. •         The sale of the Property is a supply of a going concern. On a specified date, you and the Lessee executed the Lease. The key terms of the Lease, as noted in the Schedule to the Lease, are as follows: •         The commencement date of the Lease is a specified date, with a term of X months. •         The Lease is over the entire of the Property.

•         The Lessee may use the Property for the specified purposes. •         Rent is payable at a rate of $X (inclusive of GST) per annum, being $X (inclusive of GST) per calendar month. •         Rent is payable monthly in arrears. Settlement for the sale of the Property occurred on a specified date. You received rental income and issued invoices for the lease of the Property until the settlement date.

A New Tax System (Goods and Services Tax) Act 1999 section 38-325