Taxing question: GST on land

摘要

Under the now-familiar landscape of the Goods and Services Tax (GST), the sale of farming and grazing land has caused some confusion. The question that most often arises is: If we sell off part or all of the family farm, is there GST on the sale? Under the GST legislation, the sale of a freehold interest in land is GST-free if: a farming business has been carried out on the land for at least the past five years before the sale; and the buyer of the land intends that a farming business be carried outon the land. What about what's on the land? This section of the legislation relates to the land itself, but what about livestock, or plant and machinery that may also be sold with the property? In most cases when livestock or plant and machinery are sold, they attract GST as long as the vendor is registered for GST.