SMSF may be Obliged to Pay GST on Sale of Property

SMSF Trustee and Enterprise

S9.20 (1) 9da) of A New Tax System (Goods and Services Tax) Act 1999 states that the definition of “enterprise” includes “an activity, or series of activities, done…by the trustee of a complying superannuation fund”.  The SMSF which is not a property developer, may be eligible to pay a GST on the sale of residential premises if it is done in the course or furtherance of an enterprise that it carries on and if the SMSF is registered, or required to be registered for GST.

Because the activities of a superannuation fund include maximising returns on investments, which may include a sale of the property, the sale may therefore be in the course or furtherance of an enterprise.