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  • Record keeping

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    Records to keep

    We recommend you keep:

    • accounting records for the transaction, including sale and purchase contracts and settlement statements
    • evidence of the original purchase price of the property
    • records showing how you applied the margin scheme, including identifying the particular property you sold using the margin scheme
    • records showing your agreement with the purchaser to use the margin scheme
    • if you used the valuation method, the valuations or other documents showing how you arrived at the value of the property.
    • the approved valuation.

    How long to keep them

    You must keep all records for five years after the sale.

    Records for subdivided land

    If you're subdividing land or building strata title units on the land, you must keep records showing how you worked out the margin for each subdivided lot or each unit.

    Keep records on how you apportioned:

    • a valuation of land held at 1 July 2000 that has been subdivided or developed into strata units
    • the purchase price of land acquired after 1 July 2000 that was subdivided or developed into strata units.

    A valuation or the purchase price can be apportioned by using any fair and reasonable basis.

    Issuing a tax invoice

    You don't need to issue a tax invoice to the purchasers for sales made solely under the margin scheme. This is because purchasers can't claim a GST credit for sales using the margin scheme. You may issue a receipt for the price paid.

    Sales and contracts before 29 June 2005

    Sellers must keep evidence of their choice to use the margin scheme for sales and contracts prior to 29 June 2005.

    These records are often in the sales contract. Other forms of evidence may include:

    • correspondence
    • a company or trust minute
    • a file note.

    The property must be identified by:

    • a project lot number
    • lots on a particular estate
    • land contained in a specified contract.

    We may also accept evidence of your choice to apply the margin scheme held by other parties, such as your professional advisers, valuers or financiers.

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      Last modified: 05 May 2021QC 18646