Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The * margin scheme applies in working out the amount of GST on a * taxable supply of * real property that you make by:
(a) selling a freehold interest in land; or
(b) selling a * stratum unit; or
(c) granting or selling a * long - term lease;
if you and the * recipient of the supply have agreed in writing that the margin scheme is to apply.
(1A) The agreement must be made:
(a) on or before the making of the supply; or
(b) within such further period as the Commissioner allows.
Note: Refusing to allow, or allowing, a further period within which to make an agreement is a reviewable GST decision (see Subdivision 110 - F in Schedule 1 to the Taxation Administration Act 1953 ).
(1B) A supply that you make to your * associate is taken for the purposes of subsection (1) to be a sale to your associate whether or not the supply is for * consideration.
(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; or
(e) it is a supply in relation to which all of the following apply:
(i) you acquired the interest, unit or lease from an entity as, or as part of, a * supply of a going concern to you that was * GST - free under Subdivision 38 - J;
(ii) the entity was * registered or * required to be registered, at the time of the acquisition;
(iii) the entity had acquired the entire interest, unit or lease through a taxable supply on which the GST was worked out without applying the margin scheme; or
(f) it is a supply in relation to which all of the following apply:
(i) you acquired the interest, unit or lease from an entity as, or as part of, a supply to you that was GST - free under Subdivision 38 - O;
(ii) the entity was registered or required to be registered, at the time of the acquisition;
(iii) the entity had acquired the entire interest, unit or lease through a taxable supply on which the GST was worked out without applying the margin scheme; or
(g) it is a supply in relation to which all of the following apply:
(i) you acquired the interest, unit or lease from an entity who was your * associate, and who was registered or required to be registered, at the time of the acquisition;
(ii) the acquisition from your associate was without * consideration;
(iii) the supply by your associate was not a taxable supply;
(iv) your associate made the supply in the course or furtherance of an * enterprise that your associate * carried on;
(v) your associate had acquired the entire interest, unit or lease through a taxable supply on which the GST was worked out without applying the margin scheme.
(3A) Subparagraphs (3)(g)(iii) and (iv) do not apply if the acquisition from your * associate was not by means of a supply by your associate.
(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.