Private ruling: GST - margin scheme eligibility
Date of advice: 17 December 2025
Published: 2 February 2026
Ruling period: XX/XX/20XX - XX/XX/20XX
Date scheme commenced: XX/XX/2025

Ruling: Q1: Are you eligible to apply the margin scheme under Division 75 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) to the taxable supplies of new residential premises? | A1: Yes, when you sell new residential premises, you will be eligible to apply the margin scheme in working out the amount of GST payable on each supply.

Relevant facts and circumstances: You registered to Australian Business Number and registered for Goods and Services Tax (GST) effective XX/XX/XXXX. You acquired freehold interest in land. You acquired the property vendors who are not your associates, fellow GST group members, or fellow participants in a GST joint venture. No GST was payable on the purchase price for the property. The property was sold with an existing residence on the land. You will demolish the old residence and develop the property for sale. You will seek agreement in writing with each prospective purchaser to calculate the GST liability on the supply of the new residential premises under the margin scheme in contracts of the sale new residential premises.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-5 | A New Tax System (Goods and Services Tax) Act 1999 section 40-65 | A New Tax System (Goods and Services Tax) Act 1999 section 75-5