A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-2 - Special rules mainly about supplies and acquisitions  


The special rules in this Part mainly modify the operation of Part 2-2 , but they may affect other Parts of Chapter 2 in minor ways.

Division 75 - Sale of freehold interests etc.  

75-12   Working out margins to take into account failure to pay full consideration  

In working out the * margin for a * taxable supply of * real property you make (the later supply ), if:

(a) you had acquired the interest, unit or lease in question through a supply (the earlier supply ); and

(b) the * consideration for:

(i) if your acquisition was not an acquisition from a * member of a * GST group of which you were also a member at the time of the acquisition - the earlier supply; or

(ii) if your acquisition was such an acquisition - the last supply of the interest, unit or lease at a time when the supplier of that last supply was not, but the * recipient of that last supply was, a member of the GST group;
had not been paid in full at the time of the later supply;

treat the amount of the consideration as having been reduced by the amount of unpaid consideration referred to in paragraph (b).


If you subsequently pay more of the consideration for the earlier supply, you may have a decreasing adjustment: see section 75-27 .

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