Sales and contracts of property you made before 29 June 2005
If you sold your property under the margin scheme before 29 June 2005, and used the valuation method to work out the margin, different valuation methods may apply.
The different valuation methods are contained in the following Margin Scheme Valuation Determinations:
Deciding to use the margin scheme prior to 29 June 2005
Although you must have chosen to apply the margin scheme by the time the sale was made, you did not need a written agreement between the seller and purchaser if the sale was made either:
- before 29 June 2005
- on or after 29 June 2005 but you entered into a contract or granted rights or options over the property before 29 June 2005.
For these transactions the seller chose whether to apply the margin scheme. The seller must have chosen to apply the margin scheme on or before selling the property and could not choose to apply it after the sale. For example, if you sold property under a standard land contract then you must have chosen to apply the margin scheme at or before the settlement date.
- PS LA 2005/2 (GA) GST and time of choice to apply the margin scheme – for supplies made before 29 June 2005
Requests for more time
If you requested an extension of time to work out the GST payable on the sale of property as if the margin scheme applies, then you should have kept the following:
- any written request made to us for more time to choose the margin scheme
- our response.
If you did not apply the margin scheme by the time the sale was made, you may ask to account for GST on the sale as if the margin scheme applied. To do this, write to us at:
Australian Taxation Office
PO Box 3524
ALBURY NSW 2640
You must show that:
- you did not choose to apply the margin scheme on or before the date you sold the property because of a mistake
- you satisfy all other requirements under the margin scheme
- the purchaser cannot claim a GST credit or a decreasing adjustment for the purchase
- you and the purchaser did not agree on a price that included GST
- you are not making the agreement to avoid paying GST.
We will write to you and tell you whether or not you may use the margin scheme on your sale.
Outlines how you can use the margin scheme, how to apply it, the calculation methods, GST payable, eligibility, valuations, written agreements, record keeping and how to access more information.