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21 Feb 1111 GST payable on sale of land to Qld Government - SXGX

The AAT has held that the taxpayer was liable to GST in respect of the sale of land to the Queensland Government. Although the land had been identified for compulsory resumption, the sale took place at a "time the statutory process of resumption was in prospect but it had not come to fruition".

Specifically, para 82 of GSTR 2006/9 did not apply, when it said: "In cases where land vests in the authority as a result of the authority seeking to acquire the land, and initiating the compulsory acquisition process pursuant to its statutory right, then the owner does not make a supply because it takes no action to cause its legal interest to be transferred or surrendered to the authority."

On this basis, the AAT concluded that the sale by the taxpayer to the Queensland Government constituted a supply and it was a supply for consideration: SXGX and FCT [2011] AATA 110 (AAT, Hack SC DP, 18 February 2011).


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