What is a GST-free supply?

The concept of a GST-free supply is a critical area of Australian tax law, particularly relevant for legal practitioners advising on property and commercial transactions. This guidance note authored by tax law experts provides an authoritative overview of when supplies are GST-free under the A New Tax System (Goods and Services Tax) Act 1999 (Cth). It explores the scope of GST-free supplies, focusing on essential goods and services, with detailed attention to property transactions and the going concern concession.

Topics Covered

• General principles of GST-free supplies
• GST-free supplies for property transactions
• A supply of a going concern
• Licenses and permits in GST-free supplies
• Adjustment events impacting GST-free supplies
• Subdivided farm land concessions

Essential Insights

• Understand the five strict elements required for a supply to qualify as a GST-free going concern.
• Assess the critical risks vendors face if the going concern concession is incorrectly claimed.
• Recognise complexities involving licenses and permits that may affect GST-free status.
• Explore how adjustment events can alter GST liabilities post-transaction without straightforward remedies.
• Identify nuanced thresholds for farm land and Crown land supplies that attract GST-free treatment.
• Consider the interplay between contract provisions and statutory requirements to safeguard GST concessions.