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-N - Grants of land by governments  

38-445   Grants of freehold and similar interests by governments  

(1)    
A supply by the Commonwealth, a State or a Territory of land on which there are no improvements is GST-free if:

(a) the supply is of a freehold interest in the land; or

(b) the supply is by way of * long-term lease .

(1A)    

A supply by the Commonwealth, a State or a Territory of land is GST-free if:

(a) the supply is of a freehold interest in the land, or is by way of * long-term lease ; and

(b) the Commonwealth, State or Territory had previously supplied the land, by way of lease, to the * recipient of the supply; and

(c) at the time of that previous supply, there were no improvements on the land; and

(d) because conditions to which that lease was subject had been satisfied, the recipient was entitled to the supply of the freehold interest or the supply by way of long-term lease.

(2)    
However, the supply is not GST-free if, since 1 July 2000, the land has already been the subject of a supply that is GST-free under this section.