Hi I haven't received a response regarding this question in a previous post, is this something that I can be assisted with? Please see below my inital question and the additional information that i provided to a reply that I recived in that post.
It was confirmed that a property that was a main residence can continue to maintin this exemption for CGT purposes when 2 properties are built and the land is subdivided provided that the taxpayer moves back into the nominated property as soon as possible for at least 3 months. (from point of demolishion it has been within 4 years).
However, if the property is subseqently sold it was confirmed that CGT wont be applicable due to the main residence exemption being in place but will GST be payable upon the sale of the property becuase it is consided a new residental build?
With consideration to GSTR 2003/3 11 being:The sale of a person's private residential premises will not be subject to GST, even if the premises are new residential premises, unless the sale is in the course or furtherance of that person's enterprise and the person is registered or required to be registered for GST.
From the various rullings/law I have read subdivision doesn't necessarily mean that the venture is considered an enterprise, hence the reason of my question.
To elaborate further on what the scenario may be, the intention is that one would be rented and the other would be the new family home. However in the event that circumstances change over a period of 6-12 Months, which due to the pandemic is a reality, it seems very heavy handed that the property that is the family home would attract GST in the event that it is sold to due to someones potental financial situation not being favourable, particularly that the original property (pre demoltion) was potentially bought over 30 years ago.
You can understand my confusion as it is quite vague when it is applied to particular situations such as this, being that the examples in the above mentioned GSTR 2003/3 are all based on property developers rather than a family realising the value of thier assets.
Thanks.
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