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  • Applying the margin scheme to a property sale

    The margin scheme is a way of working out the GST you must pay when you sell property as part of your business. You can only apply the margin scheme if the sale of a property is taxable.

    The amount of GST you must pay on property sales is generally equal to one-eleventh of the sale price. Under the margin scheme, the GST is calculated on the difference between the sale price and your purchase price of the property (or the property's value on 1 July 2000 if it was acquired before that date).

    Use our GST property decision tool to work out if GST applies to your property sales. The tool was recently updated for easier use on mobile devices. It can be used to determine GST on the sale, lease or purchase of real property (including vacant land, residential and commercial premises).

    Checking your eligibility

    Check your eligibility to use the margin scheme when selling property. To use the margin scheme you need to be registered for GST (or required to be registered for GST).

    The application of GST to property-related transactions can be complex. Your registered tax or BAS agent can provide advice on GST treatment for property transactions.

    See also:

      Last modified: 03 Nov 2017QC 53847