If a building comprising flats is subject to a strata title subdivision, will the sale of the stratum flats be the sale of “new residential premises”?
ATO Position In respect of a building comprising flats no separate title exists in respect of each of the individual flats. The title to the relevant land and improvements as a whole. If the building comprising the flats have been previously sold as residential premises then the sale will have been in respect of the property as a whole and not in respect of any individual flat. Strata title legislation provides that the existing title for land to be subdivided is replaced by a separate title for each of the lots or units created by the subdivision. As a result, when the strata titled lot or unit is sold for the first time after subdivision, the sale will be a sale of new residential premises as the separate lot or unit has not been previously sold as residential premises, nor was it capable of being sold separately as residential premises prior to the subdivision.
Related Questions
- Is the sale of converted rented flats to strata title for sale purposes an enterprise and subject to the Goods and Services Tax (GST)?
- Is my occupancy as secure with a personal licence as opposed to strata title or leasehold?
- What does the issuance of a certificate of title after foreclosure sale mean?
