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.  

75-11   Margins for supplies of real property in particular circumstances  

Margin for supply of real property acquired from fellow member of GST group

(1)    
If:

(a) you acquired the interest, unit or lease in question at a time when both you and the entity from whom you acquired it were * members of the same * GST group ; and

(b) on or after 1 July 2000, there has been a supply (an earlier supply ) of the interest, unit or lease that occurred at a time when the supplier was not a member of the GST group; and

(ba) the * recipient was at that time, or subsequently became, a member of the GST group;

the margin for the supply you make is the amount by which the * consideration for the supply exceeds:

(c) the consideration for the last such earlier supply, if the supplier and the recipient were not * associates at that time; or

(d) the * GST inclusive market value of the interest, unit or lease at that time, if the 2 entities were associates at that time.

(2)    
If:

(a) you acquired the interest, unit or lease in question at a time when both you and the entity from whom you acquired it were * members of the same * GST group ; and

(b) subsection (1) does not apply;

the margin for the supply you make is the amount by which the * consideration for the supply exceeds an * approved valuation of the interest, unit or lease as at 1 July 2000.

Margin for supply of real property acquired from joint venture operator of a GST joint venture

(2A)    
If:

(a) you acquired the interest, unit or lease in question at a time when you were a * participant in a * GST joint venture and the entity from whom you acquired it was the * joint venture operator of the joint venture; and

(b) you acquired the interest, unit or lease for consumption, use or supply in the course of activities for which the joint venture was entered into; and

(c) on or after 1 July 2000, there has been a supply (an earlier supply ) of the interest, unit or lease to the entity from whom you acquired it (whether or not that entity was the joint venture operator of the joint venture at the time of that acquisition);

the margin for the supply you make is the amount by which the * consideration for the supply exceeds:

(d) the consideration for the last such earlier supply, if the supplier and the * recipient were not * associates at the time of the earlier supply; or

(e) the * GST inclusive market value of the interest, unit or lease at that time, if the 2 entities were associates at that time.

(2B)    
If:

(a) you acquired the interest, unit or lease in question at a time when you were a * participant in a * GST joint venture and the entity from whom you acquired it was the * joint venture operator of the joint venture; and

(b) you acquired the interest, unit or lease for consumption, use or supply in the course of activities for which the joint venture was entered into; and

(c) subsection (2A) does not apply;

the margin for the supply you make is the amount by which the * consideration for the supply exceeds an * approved valuation of the interest, unit or lease as at 1 July 2000.

Margin for supply of real property acquired from deceased estate

(3)    
If:

(a) you acquired the interest, unit or lease in question by * inheriting it; and

(b) none of subsections (1) to (2B) applies; and

(c) the entity from whom you inherited the interest, unit or lease (the deceased ) acquired it before 1 July 2000;

the margin for the supply you make is the amount by which the * consideration for the supply exceeds:

(ca) if you know what was the consideration for the supply of the interest, unit or lease to the deceased and you choose to use that consideration to work out the margin for the supply - that consideration; or

(d) if paragraph (ca) does not apply and, immediately before the time at which you inherited the interest, unit or lease, the deceased was neither * registered nor * required to be registered - an * approved valuation of the interest, unit or lease as at the latest of:

(i) 1 July 2000; or

(ii) the day on which you inherited the interest, unit or lease; or

(iii) the first day on which you registered or were required to be registered; or

(e) if paragraph (ca) does not apply and, immediately before the time at which you inherited the interest, unit or lease, the deceased was registered or required to be registered - an approved valuation of the interest, unit or lease as at the later of:

(i) 1 July 2000; or

(ii) the first day on which the deceased registered or was required to be registered.

(4)    
If:

(a) you acquired the interest, unit or lease in question by * inheriting it; and

(b) none of subsections (1) to (2B) applies; and

(c) the entity from whom you inherited the interest, unit or lease (the deceased ) acquired it on or after 1 July 2000;

the margin for the supply you make is the amount by which the * consideration for the supply exceeds:

(d) if you know what was the consideration for the supply of the interest, unit or lease to the deceased and you choose to use that consideration to work out the margin for the supply - that consideration; or

(e) if paragraph (d) does not apply - an * approved valuation of the interest, unit or lease as at the day on which the deceased acquired it.

Margin for supply of real property acquired as a GST-free going concern or as GST-free farm land

(5)    

If:

(a) you acquired the interest, unit or lease in question from an entity as, or as part of:

(i) a * supply of a going concern to you that was * GST-free under Subdivision 38-J ; or

(ii) a supply to you that was GST-free under Subdivision 38-O ; and

(b) the entity was * registered or * required to be registered , at the time of the acquisition; and

(c) none of subsections (1) to (4) applies;

the margin for the supply you make is the amount by which the * consideration for the supply exceeds:

(d) if that entity had acquired the interest, unit or lease before 1 July 2000 and on that day was registered or required to be registered:

(i) if you choose to apply an * approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at 1 July 2000; or

(ii) if subparagraph (i) does not apply - the * GST inclusive market value of the interest, unit or lease as at 1 July 2000; or

(e) if that entity had acquired the interest, unit or lease on or after 1 July 2000 and had been registered or required to be registered at the time of the acquisition:

(i) if the entity ' s acquisition was for consideration and you choose to apply an approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at the day on which the entity had acquired it; or

(ii) if the entity ' s acquisition was for consideration and subparagraph (i) does not apply - that consideration; or

(iii) if the entity ' s acquisition was without consideration - the GST inclusive market value of the interest, unit or lease as at the time of the acquisition; or

(f) if that entity had not been registered or required to be registered at the time of the entity ' s acquisition of the interest, unit or lease (and paragraph (d) does not apply):

(i) if you choose to apply an approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at the first day on which the entity was registered or required to be registered; or

(ii) if subparagraph (i) does not apply - the GST inclusive market value of the interest, unit or lease as at that day.

Margin for supply of real property acquired from associate

(6)    

If:

(a) you acquired the interest, unit or lease in question from an entity who was your * associate , and who was * registered or * required to be registered , at the time of the acquisition; and

(b) the acquisition from your associate was without * consideration ; and

(c) the supply by your associate was not a * taxable supply ; and

(d) your associate made the supply in the course or furtherance of an * enterprise that your associate * carried on ; and

(e) none of subsections (1) to (5) applies;

the margin for the supply you make is the amount by which the consideration for the supply exceeds:

(f) if your associate had acquired the interest, unit or lease before 1 July 2000 and on that day was registered or required to be registered:

(i) if you choose to apply an * approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at 1 July 2000; or

(ii) if subparagraph (i) does not apply - the * GST inclusive market value of the interest, unit or lease as at 1 July 2000; or

(g) if your associate had acquired the interest, unit or lease on or after 1 July 2000 and had been registered or required to be registered at the time of the acquisition:

(i) if your associate ' s acquisition was for consideration and you choose to apply an approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at the day on which your associate had acquired it; or

(ii) if your associate ' s acquisition was for consideration and subparagraph (i) does not apply - that consideration; or

(iii) if your associate ' s acquisition was without consideration - the GST inclusive market value of the interest, unit or lease at the time of the acquisition; or

(h) if your associate had not been registered or required to be registered at the time of your associate ' s acquisition of the interest, unit or lease (and paragraph (f) does not apply):

(i) if you choose to apply an approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at the first day on which the entity was registered or required to be registered; or

(ii) if subparagraph (i) does not apply - the GST inclusive market value of the interest, unit or lease as at that day.

(6A)    

Paragraphs (6)(c) and (d) do not apply if the acquisition from your * associate was not by means of a supply by your associate.

(6B)    

To avoid doubt, you cannot be taken, for the purposes of paragraph (5)(f) or (6)(h), to be * registered or * required to be registered on a day earlier than 1 July 2000.

(7)    
If:

(a) you acquired the interest, unit or lease in question from an entity who was your * associate at the time of the acquisition; and

(b) none of the other subsections of this section apply;

the margin for the supply you make is the amount by which the * consideration for the supply exceeds:

(c) if your acquisition was made before 1 July 2000 - an * approved valuation of the interest, unit or lease as at 1 July 2000; or

(d) if your acquisition was made on or after 1 July 2000 - the * GST inclusive market value of the interest, unit or lease at the time of the acquisition.

(8)    

Subsection (6) or (7) applies to an acquisition through a supply made by:

(a) a * GST branch ; or

(b) a * non-profit sub-entity ; or

(c) a * government entity of a kind referred to in section 72-95 or 72-100 ;

as if Subdivision 72-D affected the operation of that subsection in the same way that it affects the operation of Division 72 .