Reforms to the GST margin scheme

In the 2010-11 Federal Budget the government announced an amendment to the GST margin scheme.

The amendment provides the valuation methods for determining the margin for a taxable supply of an interest, unit or lease where the real property supplied has been subdivided from land or premises previously acquired by the supplier.

The margin can be determined by reference to the corresponding proportion of either (as applicable):

• the consideration for the acquisition or supply (depending upon the specific statutory requirements) of the interest, unit or lease
• the approved valuation of that interest, unit or lease at the specified date
• the GST inclusive market value of that interest, unit or lease at the specified day or time.

Legislation was tabled in parliament on 29 November 2012.

Media release

For more information, refer to media release no 095/2010 issued on 11 May 2010 by the Assistant Treasurer.

Legislation and supporting material

Tax Laws Amendment (2012 Measures No. 6) Bill 2012 and Explanatory Memorandum were tabled in parliament on 29 November 2012. Refer to Schedule 8.

More information For more information refer to: Draft legislation and Explanatory Memorandum released on 15 August 2012 for public consultation Treasury discussion paper Implementation of the recommendations of Treasury's review of the GST margin scheme Australian Government Budget Papers 2010-11.