If you are selling a property and the sale meets the definition of a Going Concern you may be exempt from GST. Section 38-325 of Goods and Services Tax Act 1999, states that for a Going Concern to be GST free it must meet the following conditions:

1.  The supply must be for consideration; and

2.  The recipient is registered or required to be registered for GST; and

3.  The supplier and the recipient have agreed in writing that the supply is a Going Concern. The importance of the final point is demonstrated in a case that went before the Administrative Appeals Tribunal of Australia (AATA) - Brookdale Investments Pty Ltd and Commissioner of Taxation [2013] AATA 154 (20 March 2013).

In this case there was not an agreement in writing made before the transaction stating that the sale was of a Going Concern and therefore exempt of GST.  The AATA found that the supplier was liable for the GST.

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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