Hi all,
I’m seeking general views on the GST treatment for the sale of residential properties in the following scenario.
Vacant land was acquired on separate occasions (in close proximity), and residential dwellings were constructed on each site. Each property was developed independently, with its own construction costs, and is a standalone dwelling (i.e. not part of a subdivision or integrated development project).
Upon completion, the properties were immediately leased and used solely for long-term residential rental for more than five years.
The properties were later sold, including multiple properties being disposed of within the same period.
Based on my understanding:
- The properties would no longer be considered “new residential premises” due to being used for residential accommodation for more than five years; and
- The sale would therefore be treated as input taxed under section 40-65.
However, I would appreciate views on whether the fact that multiple properties were sold in the same timeframe (despite being independently acquired and developed) could give rise to a risk that the ATO may consider the activities to be in the course of an enterprise or a profit-making undertaking for GST purposes.
There has been no subdivision, redevelopment, or repeated pattern of similar transactions beyond these properties, and each property was held as a long-term rental investment.
Any insights or similar experiences would be appreciated.
Thanks in advance.
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