Use of the Grouping provisions and the Margin Scheme to avoid or reduce the Goods and Services Tax (GST) on the sale of new residential premises

Two or more entities apply for approval as a GST group, or are currently members of a GST group. The entities may be new or existing. 2. A group member owns or acquires land and substantially completes, or arranges the substantial completion, of residential units/houses on the land. 3. The group member sells the substantially completed residential units/houses to another group member without levying GST. A supply between GST group members is treated as if it were not a taxable supply. 4. In some instances, the intra-group sale is claimed to be a GST-free supply of a going concern. 5. The acquiring group member completes, or arranges the completion of, the residential units/houses, and sells them to third parties, paying GST only on the margin between the relevant sale price and the intra-group sale price. 6. The GST group claims input tax credits on the costs of construction, and/or the acquisition of the land.