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.
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 firstname.lastname@example.org
Source – ATO, 2019