1 Will the sale of the property be a taxable supply pursuant to section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
No. Issue 2 Question 2 Will the profit from the sale of the property be assessable income under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)? Answer No. This ruling applies for the following period : Year ending 30 June 2024 The scheme commenced on: 1 July 2020
The entity entered into a contract to purchase a block of land. It consequently built a house on the block through a third-party builder and began renting it immediately after completion. The house was managed by an agent which is an associated entity. Historically the entity has derived commission income from property sales (a taxable supply), but it no longer generates commission income (a taxable supply), and is only making input taxed supplies (by way of rental income). The entity is not currently registered for GST. Its current GST turnover and projected GST turnover are less than $75,000. Associates of the entity require funds. It is proposed that the entity will sell the subject property, and make funds available. It is expected that there will be a profit from the sale.
A New Tax System (Goods and Services Tax) Act 1999 section 9-5 A New Tax System (Goods and Services Tax) Act 1999 section 23-5 A New Tax System (Goods and Services Tax) Act 1999 section 40-35 A New Tax System (Goods and Services Tax) Act 1999 section 188-15 A New Tax System (Goods and Services Tax) Act 1999 section 188-20 A New Tax System (Goods and Services Tax) Act 1999 section 188-25 A New Tax System (Goods and Services Tax) Act 1999 section 195-1 Income Tax Assessment Act 1997 section 6-5 Issue 1 Question 1 Will the sale of the property be a taxable supply pursuant to section 9-5 of the GST Act? Summary You are engaged in an enterprise of leasing real property, but you are not registered or required to be registered. Based on scale and repetition, the sale of the property will not amou