When you sell a property, you may be carrying on an enterprise. If you are carrying on an enterprise, you will need to have an Australian business number (ABN) and register for GST – even for one-off transactions.

Below are the things you should consider when selling a property:

  • if you subdivided land, or acquired new land and built new residential premises. ATO information on GST at settlement will help.
  • your intent for the property when you first bought it
    • if your original intent was to develop it for resale at a profit, your activities may be regarded as an enterprise
    • if your intent changed. For example, you were not able to sell the property so instead you rented it out, there could be a change in creditable purpose.
  • if the turnover from your property transactions and other transactions are more than the GST registration threshold, you are required to register for GST.

One-off transactions

When you are carrying on an enterprise solely because you sold property as a one-off transaction, you must:

  • have an ABN and register for GST. You need to lodge activity statements for the periods required.
  • cancel you ABN and GST registration once your enterprise has ceased.