38‑475 Subdivided farm land38‑475 Subdivided farm land

38‑475 Subdivided farm land

(1) The supply of a freehold interest in, or the lease by an *Australian government agency of or the *long term lease of, *potential residential land is GST‑free if: (a) the land is subdivided from land on which a *farming business has been *carried on for at least 5 years; and (b) the supply is made to an *associate of the supplier of the land without *consideration or for consideration that is less than the *GST inclusive market value of the supply. (2) An entity *carries on a farming business if it carries on a *business of: (a) cultivating or propagating plants, fungi or their products or parts (including seeds, spores, bulbs and similar things), in any physical environment; or (b) maintaining animals for the purpose of selling them or their bodily produce (including natural increase); or (c) manufacturing dairy produce from raw material that the entity produced; or (d) planting or tending trees in a plantation or forest that are intended to be felled.