Recorded Webinar: Margin Scheme Howlers in Property Matters – Avoiding Them Before They Happen

The margin scheme is a favourite of residential property developers. It always sounds good in theory, but in practice attempts to use it often fail for want of attention to the detail. This presentation covers all the usual issues when using the margin scheme with a focus on the practical things your clients need to cover off on in order to ensure that their choice is effective and the GST results are not a disaster. Given the freewheeling and swashbuckling nature of many property developers, this is easier said than done! It examines:

• The margin scheme: a quick refresher on how it works

• Practical problems: on which margin is the GST calculated:

  • prior GST-free sales – look through provisions

  • no sale prior to the start of GST

• Practical problems: 30 June 2000 valuations – complying with the Commissioner’s guidelines – what can go wrong – case law

• Conditional application of the margin scheme – conditioned on what – can you do it?

• Practical problems: consolidation of sites for redevelopment – how you manage different margin scheme status of different parcels

• Practical problems: application of withholding tax to margin scheme transactions

• Practical problems: how do you ensure that the margin scheme applies?What preconditions must be met?