Goods and Services Tax Advice
GSTA TPP 011W
Goods and services tax: Where a property has been sold using the margin scheme, does Division 72 of the GST Act have any effect if the consideration paid by the associate is below market value?
Please note that the PDF version is the authorised version of this ruling.This document has changed over time. View its history.
Notice of Withdrawal
1. GSTA TPP 011 deals with the calculation of GST payable under Division 75 of A New Tax System (Goods and Services Tax) Act 1999 ('GST Act') on a sale of real property under the margin scheme to an associate for less than its market value. It explains that Division 72 of the GST Act does not affect the application of the margin scheme.
2. GSTA TPP 011 does not reflect how the margin scheme applies to sales of real property to an associate on or after 17 March 2005. This is because subsection 75-11(7) and section 75-13 of the GST Act (regarding supplies and acquisitions between associates) was inserted by Tax Laws Amendment (2005 Measures No 2) Act with effect from that date.
Commissioner of Taxation
11 July 2012