Document ID: chunk:federal_register_of_legislation:F2020L00346:body:0:p1
Version: federal_register_of_legislation:F2020L00346
Segment Type: other
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Character Range: 0–2941

Legislative Instrument

A New Tax System (Goods and Services Tax) Margin Scheme Valuation Requirements Determination 2020

I, Louise Clarke, Deputy Commissioner of Taxation, Policy, Analysis and Legislation, Law Design and Practice, make this determination under subsection 75‑35(1) of the A New Tax System (Goods and Services Tax) Act 1999.

Louise Clarke
Deputy Commissioner of Taxation
Policy, Analysis and Legislation
Law Design and Practice
Dated: 16/03/2020

1.                  Name of instrument
This determination is the A New Tax System (Goods and Services Tax) Margin Scheme Valuation Requirements Determination 2020.

2.                  Commencement
This instrument commences on the day after it is registered on the Federal Register of Legislation.

3.                  Application
This determination specifies the requirements for making valuations for the purposes of applying the margin scheme in Division 75 of the GST Act. The requirements apply to valuations for taxable supplies of real property made on or after 1 March 2010.

This determination also specifies requirements for making valuations obtained by the Commissioner for the purposes of applying the margin scheme in specified circumstances. The requirements apply to valuations for taxable supplies of property made before and on or after 1 March 2010.

4.                  Determination
This determination applies to entities that make taxable supplies of real property and want to apply the margin scheme to calculate their GST liability.

What is the freehold interest in land, stratum unit or long-term lease that you value?

If the real property that you supply by selling a freehold interest in land or selling a stratum unit or granting or selling a long-term lease is the same interest, unit or lease that existed at the valuation date, the valuation must be of that interest, unit or lease.

If the real property that you supply is not the same interest, unit or lease that existed at the valuation date, but was derived from an interest, unit or lease that was in existence at that date, the valuation must be made as follows:

         (1)               a valuation of the interest, unit or lease in existence at the valuation date must be made; and

         (2)               the valuation of that interest, unit or lease must be apportioned on a fair and reasonable basis, to ascertain the part of the valuation that relates to the interest, unit or lease that you supply.

Mixed supplies

If you make a supply of an interest, unit or lease that has separately identifiable taxable and non-taxable (that is, GST-free or input taxed) parts, the valuation of that 'mixed supply' must be made as follows:

         (3)               a valuation of the entire interest, unit or lease in existence at the valuation date must be made; and

         (4)               the valuation of that interest, unit or lease must be apportioned on