| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052488245452
Date of advice: 17 December 2025
Ruling
Subject: GST - margin scheme eligibility
Question 1
Are you eligible to apply the margin scheme under Division 75 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) to the taxable supplies of new residential premises?
Answer 1
Yes, when you sell new residential premises, you will be eligible to apply the margin scheme in working out the amount of GST payable on each supply.
This ruling applies for the following period:
XX/XX/20XX - XX/XX/20XX
The scheme commenced on:
XX/XX/2025
Relevant facts and circumstances
You registered to Australian Business Number and registered for Goods and Services Tax (GST) effective XX/XX/XXXX.
You acquired freehold interest in land.
You acquired the property vendors who are not your associates, fellow GST group members, or fellow participants in a GST joint venture.
No GST was payable on the purchase price for the property.
The property was sold with an existing residence on the land.
You will demolish the old residence and develop the property for sale.
You will seek agreement in writing with each prospective purchaser to calculate the GST liability on the supply of the new residential premises under the margin scheme in contracts of the sale new residential premises.
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 40-65
A New Tax System (Goods and Services Tax) Act 1999 section 75-5
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
