When a commercial property is sold with its tenancy in place, the sale can sometimes be treated as the sale of an operating business rather than the sale of a building.
When that applies and both parties agree to it correctly,
GST is not payable on the purchase.
On a $4,325,000 acquisition, that was $432,500
that stayed with our client.
It is not exotic. It is well established. It just gets missed, because it has to be identified early and documented properly, and most buyers are not looking for it.
On the Bondi Junction acquisition, our client saved $707,500 in total.
$275,000 came from negotiation.
We brought the price down from $4,600,000 to $4,325,000.
$432,500 came from structure.
The transaction qualified as the sale of a going concern.
The negotiation was the visible part. The structuring was worth more.
Getting these right early affects what you pay and what you keep:
We identify these at the brief stage and work them
through with your accountant and solicitor.
