ARTICLE · 23 NOVEMBER 2008

GST Margin Scheme Changes Finally Before Parliament

Norton Rose Fulbright Australia

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The Federal Government has introduced a Bill to implement changes to the operation of the margin scheme on the sale of real property. The changes take effect from the date of royal assent of the Tax Laws Amendment (2008 Measures No. 5) Bill 2008 (Bill).

AustraliaTax

David Stavropoulos

Anna Wilson

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The Federal Government has introduced a Bill to implement changes to the operation of the margin scheme on the sale of real property. The changes take effect from the date of royal assent of the Tax Laws Amendment (2008 Measures No. 5) Bill 2008 (Bill). Relevantly, the Bill has no retrospective effect, however, the changes to the way the margin scheme operates could cause problems for developers buying land under a GST-free or non-taxable supply.

Developers may wish to expedite the signing of contracts or option agreements for properties that can be acquired GST-free. Otherwise, developers will need to account for the new margin scheme rules in any costings for developments that will be acquired on or after the Bill receives royal assent.

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