VIC GST on property sale including business

[janb]

We own a house and 64 acre property - zoned grazing. We have had this property for 18 years and built a boarding kennels on part of the property which are still operating. We elected to register for gst originally as we claimed back gst on all the building costs and infrastructure improvements since even though not required as income is not high.We are retiring and selling the property and ongoing business. Our intention was to sell the property with everything included and purchasers can operate as a boarding kennels or use for breeding.
The purchaser have indicated that they cannot proceed with sale if contract is plus gst. Firstly the land is zoned grazing, second as the home is on the land, gst does not apply to a home and existing land? If the business is a 'going concern' then purchasers need to be registered for gst to get an exemption. The whole thing is confusing, anyone can help?

 

[Rob Legat - SBPL]

The ATO is cracking down majorly on GST in property sales. From what you’ve said there will be a GST component in the mix. For acreage land, I understand the ATO has an ‘envelope’ that applies to the residence, to carve that part out of the GST. The rest may be fair game. You’d be best off checking with a tax accountant, and quizzing them on the capital gains ramifications at the same time.