When you sell property, you may be carrying on an enterprise. If you are carrying on an enterprise, you will need an Australian business number (ABN) and register for GST – even for one-off transactions.
You will need to consider GST implications:
If you subdivide land or acquire new land and build new residential premises;
If your original intent is to develop it for resale at a profit, these activities may be regarded as an enterprise;
If your intent has changed. For example, you were not able to sell the property so instead you rented it out, there could be a change in creditable purpose.
If the turnover from your property transactions and other transactions are more than the GST registration threshold, you are required to register for GST.
One-off transactions
When you are carrying on an enterprise solely because you sold property as a one-off transaction, you must:
- have an ABN and register for GST. You will need to lodge activity statements for the periods required.
- cancel your ABN and GST registration once your enterprise has ceased.
If you would like more information, please contact me on +61 2 9699 9171 or email shane@makecentsaccounting.com.au
Source – ATO, 2019
