EV 1052488245452currentnon-binding advice

GST - margin scheme eligibility

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

1 Are you eligible to apply the margin scheme under Division 75 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) to the taxable supplies of new residential premises?

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1 Yes, when you sell new residential premises, you will be eligible to apply the margin scheme in working out the amount of GST payable on each supply. This ruling applies for the following period: XX/XX/20XX - XX/XX/20XX The scheme commenced on: XX/XX/2025

3

You registered to Australian Business Number and registered for Goods and Services Tax (GST) effective XX/XX/XXXX. You acquired freehold interest in land. You acquired the property vendors who are not your associates, fellow GST group members, or fellow participants in a GST joint venture. No GST was payable on the purchase price for the property. The property was sold with an existing residence on the land. You will demolish the old residence and develop the property for sale. You will seek agreement in writing with each prospective purchaser to calculate the GST liability on the supply of the new residential premises under the margin scheme in contracts of the sale new residential premises.

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A New Tax System (Goods and Services Tax) Act 1999 section 9-5 A New Tax System (Goods and Services Tax) Act 1999 section 40-65 A New Tax System (Goods and Services Tax) Act 1999 section 75-5