How is the margin scheme calculated?
ATO Position Under the margin scheme the amount of GST on a supply is 1/11 of the margin for the supply. The margin for the supply is the amount by which the consideration for the supply exceeds the consideration for your acquisition of the interest, unit or lease in question. Example: A property is valued at $80,000 as at 1 July 2000. Under the margin scheme, GST is only calculated on the difference between the I July 2000 valuation and final sales price. If the property is sold for $102,000, the margin is $22,000. The GST payable on this amount is 1/11th of $22,000, that is, $2,000 that would have to be remitted to the Australian Taxation Office.
