A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-2 - Special rules mainly about supplies and acquisitions  

Note:

The special rules in this Part mainly modify the operation of Part 2-2 , but they may affect other Parts of Chapter 2 in minor ways.

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.

(3)    

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     subsection 38-445(1A);     and (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

(3A)    

If:

(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.

(4)    
This section has effect despite section 9-70 (which is about the amount of GST on taxable supplies).

Note:

Section 9-90 (rounding of amounts of GST) can apply to amounts of GST worked out using this section.