Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 38.475

  (1)   The supply of a freehold interest in, or the lease by an * Australian government agency of or the * long term lease of, * potential residential land is GST - free if:

  (a)   the land is subdivided from land on which a * farming business has been * carried on for at least 5 years; and

  (b)   the supply is made to an * associate of the supplier of the land without * consideration or for consideration that is less than the * GST inclusive market value of the supply.

  (2)   An entity * carries on a farming business if it carries on a * business of:

  (a)   cultivating or propagating plants, fungi or their products or parts (including seeds, spores, bulbs and similar things), in any physical environment; or

  (b)   maintaining animals for the purpose of selling them or their bodily produce (including natural increase); or

  (c)   manufacturing dairy produce from raw material that the entity produced; or

  (d)   planting or tending trees in a plantation or forest that are intended to be felled.