Using the margin scheme on property sales
If you’re in the business of selling property and paying less GST sounds good from a cash flow point of view, then the margin scheme might be right for you. The use of the margin scheme means that instead of paying GST equal to 1/11th of the sale price, you’re able to pay GST equal to 1/11th of the difference between the sale price and the purchase price (or an approved valuation). There are eligibility requirements largely based on when you bought the property and from whom you bought it from. The purchaser and seller also need to agree on its use.
