EV 1052472063788currentnon-binding advice

Goods and services tax (GST) and sale of property

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

Will GST be payable on your sale of the property?

2

No. One of the requirements for making a taxable supply is that you are registered or required to be registered for GST. The compulsory GST registration threshold for non-profit bodies is $150,000 and you consistently generate less than $150,000 a year in revenue. As such, your current GST turnover does not meet the GST registration threshold. In addition, the sale of the property is a sale of a capital asset and therefore, the proceeds of the sale of the property would be excluded from the projected GST turnover calculation under section 188-25 of the A New Tax System (Goods and Services Tax) Act 1999 . This means your projected GST turnover also does not meet the GST registration threshold. You are not required to be registered for GST as your GST turnover does not meet the GST registration threshold. It is therefore concluded your sale of the property is not subject to GST because you are not registered or required to be registered for GST. This ruling applies for the following period : DD MM 20YY to DD MM 20YY The scheme commences on: DD MM 20YY

3

You are not registered for GST. You are a non-profit body. You purchased a property located in Australia decades ago. You have been using the building as a community centre. You have also leased out the property. You consistently generate less than $150,000 a year in revenue.

4

A New Tax System (Goods and Services Tax) Act 1999 section 188-25