On Wed 15.8.2012 Treasury, released draft legislation and an explanatory memorandum on proposed changes to the margin scheme provisions contained in Div 75 of the GST Act.
Broadly, the draft legislation seeks to amend the GST Act to ensure that, where applicable, the margin scheme for a taxable supply of subdivided land or premises can be calculated using the consideration method, the valuation method, or the GST-inclusive market value method (whichever is more appropriate).
The amendments were previously released as a consultation paper on 10 December 2010 and the draft legislation takes into account comments made by stakeholders.
COMMENTS are due by 12 September 2012.
[LTN 157, 15/8]
Extract from Draft Legislation
75‑15 Subdivided real property
(1) This section applies if you make a *taxable supply of *real property that relates only to part of the land or premises in which you acquired an interest, unit or lease.
(2) In applying any of sections 75‑10 to 75‑14 in working out the *margin for the *taxable supply, use only the corresponding proportion of the following (as applicable):
(a) the *consideration for the acquisition or supply referred to in that section of that interest, unit or lease;
(b) an *approved valuation of that interest, unit or lease as at the day referred to in that section;
(c) the *GST inclusive market value of that interest, unit or lease at the day or time referred to in that section.
Example 1: If subsection 75‑11(2) applies, use only the corresponding proportion of an approved valuation of your interest, unit or lease in the unsubdivided property as at 1 July 2000.
Example 2: If subparagraph 75‑11(5)(e)(ii) applies, use only the corresponding proportion of the consideration for the acquisition of the interest, unit or lease in the unsubdivided property by the entity that later supplied it to you.