Margin scheme - made easy

When can't you use the margin scheme?

If you were charged the full rate of GST when you originally purchased the property, the margin scheme can't be used. Generally, if you were charged the full rate of GST when you purchased a property as part of your business you would have claimed the GST back.

There are special rules that may allow you to use the margin scheme where you amalgamate the fully taxable purchased property with other property purchased where the margin scheme can be used. If you are not sure, talk to your accountant or us.