in purchasing farmland using the farmland exemption for GST do i need to have an ABN number?

 Author: AlliATO(Community Support)Community Support

28 Jan 2024

Hi @Ebcmark

There are two ways the vendor can approach the sale of their farmland and be GST-free, sale of a going concern or sale of farmland.

With the sale of a going concern this will be where the:

-          Sale is for payment

-         The purchaser is registered or required to be registered for GST

-         The purchaser and seller have agreed in writing that the sale is of a going concern

The purchaser should be aware if they purchase as a going concern and use the property for a purpose other than to make a taxable sale or GST-free sale, they may have to make an increasing adjustment.

You can read more about this on our Selling a going concern page.

For the vendor to sell as farmland and the sale be GST-free it must meet the criteria:

-         The land has been used for a farming business for at least 5 years immediately before the sale

-         The purchaser intends it to be used for a farming business

The sale of farmland includes all fixtures attached to the land, such as the main residence provided the private use doesn’t cause the land to lose the essential characteristics of farmland, fences, sheds, dams ect.

You can read more about this option on our Farmland page.

We do recommend the vendor has it in writing from the purchaser that they do intend to use the land for a farming business.

There is no stipulation the purchaser must have an ABN or be registered for GST, however getting an ABN is free and can make running your business or enterprise easier. If your GST turnover reaches $75,000 or more in a 12-month period, you’ll be required to register for GST and will need an ABN to do this.