GST and the margin scheme

Before selling a property, find out if you can use the margin scheme and how to calculate GST.

Last updated 18 August 2021

The margin scheme is a way of working out the GST you must pay when you sell property as part of your business. The margin scheme is subject to eligibility.

Use the GST property decision tool to check your eligibility and help with calculating the GST

See also:

Eligibility to use the margin scheme

Determine if you are eligible to use the margin scheme to work out how much GST you must pay.

Written agreement to use margin scheme

What the written agreement must include and how to apply for an extension of time to obtain the agreement in writing.

Methods to calculate the margin

Calculate the margin with the valuation or consideration method, depending on purchase date.

Calculating the GST payable

How to calculate the GST payable on a property sale.

Valuations

If you're using the valuation method to sell property, you must use an approved method of valuing your property.

GST at settlement

GST to be paid by purchasers at settlement.

Completing your activity statement

How to complete your activity statement to account for GST when using the margin scheme.

Record keeping

What records to keep and how long to keep them.

Purchasing property using the margin scheme

You can't claim a GST credit when buying property where the margin scheme was used.

QC18646