Are you, [name], making a taxable supply pursuant to section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when you supply the lot of land subdivided from the property located at [address] as a gift to your cousin?
No, you are not making a taxable supply when you gift the lot of land subdivided from the property located at [address] ( Lot number ) to your Director's cousin and GST will not be payable on the supply. This is because the Commissioner considers the supply will not be made for consideration under paragraph 9-5(a) and will also not be made in the course or furtherance of an enterprise that you carry on under paragraph 9-5(b). Note: As you are not carrying on an enterprise in relation to the supply of [Lot number], you are not entitled to claim any input tax credits (ITCs) for any acquisition you make in relation to [Lot number] e.g. the subdivision costs. This ruling applies for the following period : 01/07/YYYY to 30/06/YYYY The scheme commenced on: [date]
[name] ( You/the Company ) is registered for GST from [date]. You are carrying on a logistics business. • [name] is the Director of the Company • [name] is the Director of the Company • [names] are also staff members of the Company You bought a property located at [address] ( the Property/the Land ) in [date]. At the time of your purchase the Property was vacant land with no building or any other structures on the Land other than # bores for water supply as the Property being rural land did not have town water connections. You obtained all government, local council and engineered approvals for the Property for stage # in [date] consisting of [number] acres. The Property was zoned rural residential when purchased. You commenced Stage # development of the Property in [date] subdividing [number]× approximately [number] acre lots from [number] acres combining total subdivided land being [number] acres which were sold more than [number] years ago. You built roads, connected water supply and electricity to these blocks during stage # of the development.
You have on [date] (survey plan [number]) subdivided another [number]-acre block known as [address] (Lot number) off the remaining [number] acres from stage # to gift to the cousin of [name] so he could live close by. At the time of this subdivision there were two mortgages on the Property with the [name of lender] as extracted from the certificate of titles [State] as of [date]: [numbers and date], and [numbers and date] The cousin is [name] ( the Cousin ) who is not registered for GST. The Cousin has not worked for or has any connections to [name]. Both the remaining property and [Lot number] have separate titles. You have not undertaken any improvements to [Lot number] that you are giving to the Cousin, leaving it to him to build his house. You have not received nor asked for any consideration/payment in exchange for [Lot number]. The Cousin will be paying the stamp duty on the transfer of [Lot number]. The transfer of [Lot number] has not yet occurred between [name] and the Cousin. You have a development approval for stage # and stage #. Stage # is approved for [number] hectare lots and stage # approved for [number] larger lots.
You have not sold or transferred any other properties in the last [number]years. You do plan to sell lots in YYYY-YYYY to fund your retirement. [Name] has ceased operating as a logistics company as of [date], and the future direction is for your Directors to retire from all businesses other than the subdivisions of the property. Once these have been sold the company will be dissolved.
A New Tax System (Goods and Services Tax) Act 1999 section 9-5 A New Tax System (Goods and Services Tax) Act 1999 section 9-20 A New Tax System (Goods and Services Tax) Act 1999 section 9-40 A New Tax System (Goods and Services Tax) Act 1999 Division 38 A New Tax System (Goods and Services Tax) Act 1999 Division 40 A New Tax System (Goods and Services Tax) Act 1999 section 195-1