Editor: The margin scheme may allow a property owner to pay less GST when they sell the property — paying GST of 1/11th of their margin on the sale, rather than 1/11th of the total sale price.
If a property owner wants to use the margin scheme when selling property, they must be eligible before the property is offered for sale.
This may be where they’re selling new property as part of their business and they’re registered for GST.
Importantly, among other criteria, there must be a written agreement before settlement between the supplier and purchaser to use the margin scheme — this could be part of the contract.
To avoid the common errors suppliers make when selling property using the margin scheme, the ATO is reminding suppliers that they must also:
Editor: We can help determine your eligibility and also calculate the margin.
Also remember that, when someone purchases property using the margin scheme, they: