GST in Action: Applying the Margin Scheme

Mr GST takes us through 3 basic case studies for applying the margin scheme when developing property, with legislative references.

In this session, we cover:

• Margin scheme methodology

  • You must know - before jumping to Step 1

  • Simplistic practical approach

• Step 1: Calculate the ‘consideration in connection’ with the supply you are making

  • What is included?

  • Settlement day adjustments

  • Calculating step by step

• Step 2: Deduct a ‘base amount’ to get the ‘margin’

• Step 3: GST equals 1/11th of the margin

• What happens if you get it wrong

• Case studies:

  • Property used in carrying on an enterprise prior to 1 July 2000

  • Property acquired after 1 July 2000 under the margin scheme from previous vendor

  • Property held privately and first used in carrying on an enterprise after 1 July 2000

Date recorded: 8 April 2025