A New Tax System (Goods and Services Tax) Act 1999
Note:Division 75 - Sale of freehold interests etc. 75-10 The amount of GST on taxable supplies (1)
If a * taxable supply of * real property is under the * margin scheme , the amount of GST on the supply is 1/11 of the * margin for the supply. (2)
Subject to subsection (3) and section 75-11 , the margin for the supply is the amount by which the * consideration for the supply exceeds the consideration for your acquisition of the interest, unit or lease in question.
Subject to section 75-11 , if:
(a) the circumstances specified in an item in the second column of the table in this subsection apply to the supply; and
(b) an * approved valuation of the freehold interest, * stratum unit or * long-term lease , as at the day specified in the corresponding item in the third column of the table, has been made;
the margin for the supply is the amount by which the * consideration for the supply exceeds that valuation of the interest, unit or lease.
|Use of valuations to work out margins|
|Item||When valuations may be used||Days when valuations are to be made|
|1||The supplier acquired the interest, unit or lease before 1 July 2000, and items 2, 3 and 4 do not apply.||1 July 2000|
|2||The supplier acquired the interest, unit or lease before 1 July 2000, but does not become *registered or *required to be registered until after 1 July 2000.||The date of effect of your registration, or the day on which you applied for registration (if it is earlier)|
|2A||The supplier acquired the interest, unit or lease on or after 1 July 2000, but the supply to the supplier:
(a) was *GST-free under
(b) related to a supply before 1
July 2000, by way of lease,
that would have been GST-
free under section 38-450
had it been made on or
after 1 July 2000.
|1 July 2000|
|3||The supplier is *registered or *required to be registered and has held the interest, unit or lease since before 1 July 2000, and there were improvements on the land or premises in question as at 1 July 2000.||1 July 2000|
|4||The supplier is the Commonwealth, a State or a Territory and has held the interest, unit or lease since before 1 July 2000, and there were no improvements on the land or premises in question as at 1 July 2000.||The day on which the *taxable supply takes place|
(a) the circumstances specified in item 4 in the second column of the table in subsection (3) apply to the supply; and
(b) there are improvements on the land or premises in question on the day on which the * taxable supply takes place;
the valuation is to be made as if there are no improvements on the land or premises on that day.
This section has effect despite section 9-70 (which is about the amount of GST on taxable supplies).
Section 9-90 (rounding of amounts of GST) can apply to amounts of GST worked out using this section.
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