A New Tax System (Goods and Services Tax) Act 1999

Chapter 3 - The exemptions  

Part 3-1 - Supplies that are not taxable supplies  

Division 38 - GST-free supplies  

Subdivision 38-O - Farm land  

38-475   Subdivided farm land  

(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.