GST and Sale of Vacant Land

The Federal Court has affirmed that the sale of vacant land is a taxable supply despite a taxpayer receiving zoning permission from a council classifying the land for residential use. This was because the land lacked the “element of shelter and basic living facilities such as provided by a bedroom and bathroom” to be considered residential premises.

• The Commissioner’s established view is that vacant land cannot constitute residential premises.
• Generally, the sale of residential premises is input taxed to the extent the premises are used predominately for residential accommodation.

For the full explanatory memorandum, please click here.