When a property is sold, and that property is a taxable property, you must normally pay one eleventh of that sales value as GST.
The Margin scheme allows a seller to only pay GST on the margin for the sale which is usually the difference between the sale price and the original purchase price. This will result in less GST overall being paid to the Australian Taxation Office and a higher profit for the seller.
This paper covers the Margin Scheme under the following headings:
- Normal GST Payment On A Property Sales
- GST Payable On The Margin
- Using The Margin Scheme
- Variations In The Operation Of The Margin Scheme
- Calculation Of The Margin
- Record Keeping For Margin Scheme
- Professional Advice
