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In most cases, yes, this would become a capital asset. One the new resi is over 5 years old, it is no longer new resi and no GST is payable on sale. The issue here is that the GST claimed on the building would need to be paid back, using the ATO's ridiculously complicated apportionment method.

A bit late back to this, I realise... I'd agree this would attract GST on the one sold inside the five years. It's clearly an enterprise, and not a one off. This is a much different example to the other example you have used. A separate - but connected - matter. I'm assuming they have not...

You've got me thinking (which is a good thing!). I read it a little differently. My understanding is that new residential property is subject to GST, and GST must be paid on sale only if the seller is required to be registered for GST. GSTR2003/3 states: The sale of a person's private...

Interesting, I'm not so sure it's a taxable supply, because it lacks the intent to make a profit. Para 235 of MT2006/1 speaks of one-off transactions being taxable on revenue account, as the property was acquired for the purpose of profit-making by sale. Which is different to the intent in your...