GST and Sale of Vacant Land
The Federal Court has affirmed that the sale of vacant land is a taxable supply despite a taxpayer receiving zoning permission from a council classifying the land for residential use. This was because the land lacked the “element of shelter and basic living facilities such as provided by a bedroom and bathroom” to be considered residential premises.
The Commissioner’s established view is that vacant land cannot constitute residential premises.
Generally, the sale of residential premises is input taxed to the extent the premises are used predominately for residential accommodation.