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Snapshot

  • Everything related to the normal conduct of a complying superannuation fund is an enterprise for GST purposes.
  • The good news is that this entitles a superannuation fund to be registered and claim input tax credits on their relevant activities.
  • The bad news is that any sale that is neither input taxed nor GST free can be subject to GST.

Your clients Betty and Bruce recently called to say that their self managed superannuation fund was selling a residential property and to request that you prepare a contract for them.

They told you their superannuation fund bought some vacant land a couple of years ago on which it built a house to be rented out as a long-term income earning investment. However, after the house was completed, but before it was rented, they received an offer that was too good to refuse and have therefore agreed to sell.

Betty and Bruce asked about GST. They said their fund was not registered. You said that because they bought and developed the property planning to keep it as a long-term rental proposition, GST would not be an issue.

You completed the contract by indicating the sale was not subject to GST. Everything went according to plan. Settlement happened to Betty and Bruce’s great satisfaction.

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