The ATO says that it accepts the Court’s decision in DB Rreef in relation to the fitout works. However, it perceives that the particular features of the lease agreement were relatively unusual in this respect. It says that in light of the Full Federal Court’s decision, it will amend the relevant passage in GSTR 2000/16 Goods and Services Tax: transitional arrangements - GST free supplies under existing agreements, as soon as possible. Taxpayers who relied on the ruling as in force before this amendment to determine their GST position will have the protection of s 105-60 of Schedule 1 to the Taxation Administration Act 1953.
For a copy of the ATO's views, go here