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Edited version of private advice
Authorisation Number: 1052066099427
Date of advice: 2 December 2022
Ruling
Subject: GST - margin scheme
The Commissioner was asked three questions about whether sale of property be a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
The Commissioner has ruled on each of the questions.
Question 1
Will the sale of Unit <number> and Unit <number>, <property address> be a taxable supply under section 9-5 A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes.
Question 2
Will you be 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 sale of the new units?
Answer
Yes.
Question 3
If the answer to Question 2 is yes, how is the margin calculated for the sale of Units <number> and <number> pursuant to sections 75-10 and 75-11 of the GST Act?
Answer
The margin on each sale will be the amount by which the consideration for each sale exceeds the GST inclusive market value of each of the respective new units at the time of the acquisition by the Plan (which occurs upon registration of the new strata plan of subdivision).