HTML CreatorGenerally, you pay the normal GST rate of one-eleventh of a property's sale price.
However, if you're eligible, you can work out your GST liability using the margin scheme. Under the margin scheme you pay one-eleventh of the margin for the sale of the property, rather than one-eleventh of the total sale price. MORE.
If you sell property as part of your business and you're registered for GST,
• Sale is taxable supply
• You have not paid GST when you originally purchase the property (Land) and have not claimed GST with your BAS MORE.
You can’t use the margin scheme:
• if you purchased the property as fully taxable and the margin scheme wasn't used
• if you weren’t registered or required to be registered for GST at the time of your sale
• for sales on or after 17 March 2005, if you MORE.
You can't use the margin scheme to sell a property if all of the following applies:
• You purchased the property from the previous owner as part of a going concern (a business).
• The previous owner was registered or required to be registered for GST at the time you purchased the property.
• The previous owner purchased the entire property through a fully taxable sale (a business transaction) and GST was worked out without using the margin scheme.
You can't use the margin scheme to sell a property if all of the following applies:
• You purchased the property from the previous owner as GST-free farmland.
• The previous owner was registered or required to be registered for GST at the time of your purchase of the property.
• The previous owner purchased the entire property through a fully taxable sale and GST was worked out without using the margin scheme.
You can't use the margin scheme to sell a property if all of the following apply:
• You purchased the property from an associate who was registered or required to be registered for GST at the time of your purchase. MORE.
There must be a written agreement to use the margin scheme before settlement for sales on or after 29 June 2005. MORE.
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