Document ID: chunk:federal_register_of_legislation:C2005A00078:clause:6_11
Version: federal_register_of_legislation:C2005A00078
Segment Type: clause
Provision Reference: sch 6 cl 11
Character Range: 19736–21767

11  Subsection 75‑5(2)
Repeal the subsection, substitute:

 (2) However, the *margin scheme does not apply if you acquired the entire freehold interest, *stratum unit or *long‑term lease through a supply that was *ineligible for the margin scheme.

Note: If you acquired part of the interest, unit or lease through a supply that was ineligible for the margin scheme, you may have an increasing adjustment: see section 75‑22.

 (3) A supply is ineligible for the margin scheme if:
 (a) it is a *taxable supply on which the GST was worked out without applying the *margin scheme; or
 (b) it is a supply of a thing you acquired by *inheriting it from a deceased person, and the deceased person had acquired all of it through a supply that was ineligible for the margin scheme; or
 (c) it is a supply in relation to which all of the following apply:
 (i) you were a *member of a *GST group at the time you acquired the interest, unit or lease in question;
 (ii) the entity from whom you acquired it was a member of the GST group at that time;
 (iii) the last supply of the interest, unit or lease by an entity who was not (at the time of that supply) a member of the GST group to an entity who was (at that time) such a member was a supply that was ineligible for the margin scheme; or
 (d) it is a supply in relation to which both of the following apply:
 (i) you acquired the interest, unit or lease from the *joint venture operator of a *GST joint venture at a time when you were a *participant in the joint venture;
 (ii) the joint venture operator had acquired the interest, unit or lease through a supply that was ineligible for the margin scheme.

 (4) A reference in paragraph (3)(b), (c) or (d) to a supply that was ineligible for the margin scheme is a reference to a supply:
 (a) that was ineligible for the margin scheme because of one or more previous applications of subsection (3); or
 (b) that would have been ineligible for the margin scheme for that reason if subsection (3) had been in force at all relevant times.