Is GST payable if a property is sold post 1 July 2000 where there has been no capital gain?
ATO Postion The GST Act is independent of the Income Tax Assessment Act 1997 Part 3-1 and 3-3 (Capital Gains Tax). In circumstances where the margin scheme is applied to the sale of real property, GST is payable on the amount by which the consideration for the supply exceeds the consideration for your acquisition of the real property. If your original purchase price is more than your sale price, then under the margin scheme, no GST is payable on the sale because there is no positive margin.
