Is the sale of converted rented flats to strata title for sale purposes an enterprise and subject to the Goods and Services Tax (GST)?
ATO Position Miscellaneous Ruling MT 2000/1 deals with the meaning of entity carrying on an enterprise for the purposes of entitlement to an Australian Business Number (‘ABN’). Section 38 dealing with the definition of an enterprise under the A New Tax System (Australian Business Number) Act 1999 is a mirror of s. 9-20 of the GST Act. The ruling represents the ATO position on the definition of an ‘enterprise’. The conversion of rented flats to strata title for sale purposes is an enterprise under s. 9-20(1)(a) of the GST Act and subject to the GST. The definition of business in s. 195 of the GST Act is the same as the definition of ‘business’ in subsection 6(1) of the Income Tax Assessment Act 1936. The definition of ‘business’ for the purposes of the GST legislation will therefore incorporate all the case law developed over the years. The conversion of rented flats to strata title for sale purposes will constitute a business as it is done in a business like-manner requiring a signific
Related Questions
- If a building comprising flats is subject to a strata title subdivision, will the sale of the stratum flats be the sale of "new residential premises"?
- Why is the transfer of real estate used for income purposes be considered a bulk sale?
- Are properties converted into self-contained flats subject to licensing?
