https://www.ato.gov.au/Business/GST/In-detail/Your-industry/Property/GST-and-the-margin-scheme/

e..g client case for reference:

- ONG THAI DUONG - 155 KEIRA >> OTC >> MARGIN SCHEME

- OLD >> word >> reference >> margin or training >> margin

  • What is Margin Scheme: The amount of GST you must normally pay on a property sale is equal to one-eleventh of the total sale price.
  • GST on Margin Scheme:
    • GST collected (by seller) = one-eleventh of the margin (difference between sale price and purchase cost)
    • GST is included in the selling price,
    • GST payable by buyer and can not be claim as credit , seller remit GST collected to ATO
    • GST collected (by seller) will be reported to the seller BAS report (G1 total sales = the margin on your sales)
    • Later on when the buyer sell the property, they can apply the margin scheme.

  • GST on normal purchase:
    • GST collected (by seller) = one-eleventh of the total sale price.
    • GST is included in the selling price,
    • GST payable by buyer and can be claim as credit , seller remit GST collected to ATO


  • Eligibiltiy for Margin Scheme: Eligibility to use the margin scheme depends on when you bought the property and when you are selling the property. 
    • Sale on or after 17 March 2005: This means you cannot use the margin scheme to sell a property if you:

      • purchased the property as fully taxable and the margin scheme was not used
      • inherited the property from a person who was not eligible to use the margin scheme
      • obtained the property from a fellow member of a GST group who was not eligible to use the margin scheme and who had purchased it from an entity that was not a member of the GST group
      • were a participant in a GST joint venture and obtained the property from the joint venture operator who had purchased the property through a sale that was ineligible for the margin scheme.
    • Purchase on or after 9 December 2008

      If you are selling property that you originally purchased, or entered into a contract to purchase, after 9 December 2008, you cannot use the margin scheme if the entity you purchased the property from was not eligible to use the margin scheme and the property was purchased:

      • as part of a GST-free going concern
      • as GST-free farm land
      • from an associate for no consideration (no payment).
    • If the entity you purchased the property from was eligible to use the margin scheme and you purchased the property through one of the above, you must include the value you and the previous seller added to the property when you calculate the margin.


  • and You require a written agreement in the sale of contract between the seller and purchaser to use the margin scheme.


  • Calculation:


  • Examples: