Small-Scale Property Development: GST Implications

35 Pages Posted: 17 May 2016 Last revised: 13 Oct 2016

See all articles by Rami Hanegbi

Rami Hanegbi

Deakin University, Geelong, Australia - Deakin Law School

Wes Obst

Deakin University, Geelong, Australia - Deakin Law School

Date Written: February 23, 2016

Abstract

The purpose of this article is to explore the GST implications of small-scale property development in Australia and to provide guidance as to whether such activities give rise to a GST liability. The legislation governing the operation of the GST affecting these projects uses the familiar terminology of ‘business’, but it also uses terminology such as ‘adventure or concern in the nature of trade’, which has not received extensive consideration by the Australian courts. The authors review relevant case law to identify key principles, which will guide the courts in applying this terminology to small-scale property development, and provide guidance as to when a taxpayer undertaking such projects will be required to register for GST. The authors also discuss the factors relevant to determining the impact of the timing of registration. The article concludes that small-scale property developers need to be aware of the complexities and uncertainty in relation to the application of the GST to such projects.

Keywords: GST, Tax, Australia, enterprise, business

JEL Classification: H29, H20

Suggested Citation

Hanegbi, Rami and Obst, Wes, Small-Scale Property Development: GST Implications (February 23, 2016). Adelaide Law Review, Forthcoming, Deakin Law School Research Paper No. 16-37, Available at SSRN: https://ssrn.com/abstract=2778901

Rami Hanegbi

Deakin University, Geelong, Australia - Deakin Law School ( email )

221 Burwood Highway
Burwood
Burwood, Victoria 3125, Victoria 3125
Australia

Wes Obst (Contact Author)

Deakin University, Geelong, Australia - Deakin Law School ( email )

221 Burwood Highway
Burwood
Burwood, Victoria 3125, Victoria 3125
Australia

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