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Edited version of private advice
Authorisation Number: 1051541839871
Date of advice: 5 August 2019
Ruling
Subject: GST and margin scheme
Question
For margin scheme purposes, does the consideration provided for the acquisition of the Property include both monetary and non-monetary components?
Answer
No, the consideration provided is the monetary consideration.
The scheme commences on:
1 July 2006
Relevant facts and circumstances
Entity A entered into an agreement to purchase a Property from entity B.
The purchased price was agreed in the agreement as $X.
Entity A did not provide any other consideration for the purchases of the Property.
There was no other consideration mentioned or negotiated during the transaction.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 9-5
A New Tax System (Goods and Services Tax) Act 1999 section 9-15
A New Tax System (Goods and Services Tax) Act 1999 subsection 75-10(2)
Reasons for decision
Based on the facts and circumstances, the consideration for the acquisition of the Property is the monetary consideration as agreed and paid.
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