GST and the margin scheme

Copies of this publication

You can download a printable version of GST and the margin scheme (NAT 15145, PDF, 209KB).

About this guide

This guide will help you:

• decide whether to use the margin scheme
• calculate GST correctly if you use it.

Terms we use

When we say:

• property, we are referring to the GST term real property including:
• a freehold interest in land
• a stratum unit, or
• a long term lease
• sale or sell, we are referring to the GST term supply
• purchase, we are referring to the GST term acquisition
• GST credit, we are referring to the GST term input tax credit
• business we are referring to the GST term enterprise
• payment (made or received), we are referring to the GST term consideration.

See the 'Definitions' section for more common terms.

This document takes into account the legislative changes to the margin scheme that came into effect on 9 December 2008. This measure intends to ensure that the interaction between the margin scheme provisions and the going concern, farmland and associate provisions does not allow property sales to be structured in a way that results in GST not applying to the value added to property once it enters the GST system.