GST on the sale of a property where the boundary has been realigned.

Hi

I purchased a rural property 9 years ago to live in as our principal place. The property came with 2 oddly shaped Titles. But for all intensive purposes was one Lot as the second Title dissected the entry, fences etc.

I decided 2 years ago to realign the boundary to make the second lot follow a fence line as my eldest son wanted to ultimately build a house there. The second Lot was reduced in area by 50% so as to avoid moving the fences.

As the realignment (Subdivision) took more than 2 years, my son lost interest and I’m now considering to sell the smaller Lot.

My query is that if I sell it, do I need to charge GST? It’s in my wife’s name and we have never conducted any business onsite or received any income from it.

thanks for taking the time to read.

 

It will depend on if it is a taxable supply and if she is registered or required to be registered for GST. Best to get some tax advice.

 

thanks....she isn’t Registered.
I’ll need to check the definition of a taxable supply

 

Whether registered is not a relevant issue. Should they be registered for a supply? Don't self assess. Seek advice as it may mitigate penalties and be a sound investment

 

Looking at the definition of “Taxable Supply” The boundary realignment (Subdivision) wasn’t undertaken as part of a business or a profit making exercise.

 

A subdivision isn't a supply....a change of legal or equitable ownership can be. Eg a partition

Op was...My query is that if I sell it, do I need to charge GST? It’s in my wife’s name and we have never conducted any business onsite or received any income from it.

Completely different issues. You don't...charge GST...the seller incurs GST.

Sale of land is often a taxable supply. Sale or transfer to son prob not. Sale otherwise....maybe either way