1 Are you, liable to Pay GST under section 9-40 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) on the sale of Lot 1?
1 Yes This private ruling applies for the following period: X XX 20XX - X XX 20XX The scheme commenced on: X XX 20XX
This private ruling is based on the facts and circumstances set out below. If your facts and circumstances are different from those set out below, this private ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. In this ruling, unless otherwise stated, the expressions 'you/your', 'the Trustee/Trustees' and 'Superannuation Fund' refer to you and are used interchangeably throughout this ruling. You are a complying self-managed superannuation fund (SMSF) within the meaning of the Superannuation Industry (Supervision) Act 1993 . You, The Trustees for this fund, are person A and person B. Person A and Person B are also the current members of this fund. You are not and have never been registered for GST. You acquired the property situated in the indirect tax zone (the Property) on X XX 20XX, for a specified amount. The Property was vacant land of X square metres in size. The land was zoned XX and has not been rezoned since your purchase. You purchased the land, which had subdivision potential, as an investment.
You engaged a local planning and project management company, to assist with the survey-strata subdivision application, site servicing, management, administration, and other tasks to facilitate the subdivision of the Property into x lots - the subdivided lots. A service proposal was received on X XX 20XX. You engaged a structural engineer, to carry out site survey works, geotechnical reporting, design of works for subdivision and final inspection. You contacted the Builder to provide potential building and design costings. The Trustees considered developing Lot 1. The Builder provided a verbal, indicative price for building residential premises on Lot 2 only and did not provide a price for construction the Lot. The Builder provided an updated quote months later, which was substantially higher than the indicative price, so you did not proceed with the Builder. On X XX 20XX, you submitted a Development Application seeking approval to subdivide the Property into two (2) residential lots as per plan of subdivision. The plan of subdivision proposed two lots, Lot 1, and Lot 2. The development application for the Plan was approved, subject to conditions.
You incurred costs to prepare the Property for subdivision into the two Lots. The subdivision was completed in XX 20XX. You constructed residential premises on Lot 2 and transferred it from the SMSF to Person B upon retirement, in XX 20XX. This is now your principal residence. After the subdivision was finalised, you had no plans to sell or develop Lot 1. On X XX 20XX, as building costs were escalating, you advertised Lot 1 for sale. In X 20XX you received an unexpected offer for Lot 1 of a specified price, which was accepted. Settlement was completed on X XX 20XX.
A New Tax System (Goods and Services Tax) Act 1999 section 9-5 A New Tax System (Goods and Services Tax) Act 1999 subsection 9-20(1) A New Tax System (Goods and Services Tax) Act 1999 section 9-40 A New Tax System (Goods and Services Tax) Act 1999 section 23-5 A New Tax System (Goods and Services Tax) Act 1999 subsection 188-10(1) A New Tax System (Goods and Services Tax) Act 1999 subsection 188-15(1) A New Tax System (Goods and Services Tax) Act 1999 subsection 188-20(1) A New Tax System (Goods and Services Tax) Act 1999 paragraph 188-25(a Question Are you, liable to Pay GST under section 9-40 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) on the sale of Lot 1? Detailed reasoning In this ruling • unless otherwise stated, all legislative references