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Getting the margin scheme right

The margin scheme may allow a property owner to pay less GST when they sell the property

Rather than paying 1/11th of the total sale price, sellers may be able to pay 1/11th of their margin on the sale.

If a property owner wants to use the margin scheme when selling property, they must be eligible before the property is offered for sale.

This may be where they’re selling new property as part of their business and they’re registered for GST.

Importantly, among other criteria, there must be a written agreement before settlement between the supplier and purchaser to use the margin scheme — this could be part of the contract.

To avoid the common errors suppliers make when selling property using the margin scheme, the ATO is reminding suppliers that they must also:

  • calculate the margin correctly; and
  • report the amount of the margin on the sale on their BAS — not the full amount of payment received.

Also remember that, when someone purchases property using the margin scheme, they:

  • can’t claim GST credits for the sale; and
  • don’t report it on their activity statement

We can help determine your eligibility and also calculate the margin. Read more about how Omnis Group works with the Australian real estate sector at omnisrealestate.com.au.

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Omnis is a strategic accounting and financial planning firm that understands you and your business, and helps you maximise the opportunity you have.

We go beyond numbers and are driven by insight, guidance, and a personalised approach tailored to your unique needs.

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Level 2, 7 Rheola Street, West Perth WA 6005

Phone Number:
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Justin Flavel

Managing Director

Justin’s experience spans across 20 years in accounting, financial analysis and general business practice.

Although born and bred on the land, Justin’s interest was more in spreadsheets, ledgers, and finance which led him to attend university. In 1992, Justin graduated with a Bachelor of Business majoring in Accounting and Finance. As well as qualifying as a CPA member and becoming a Fellow of the Taxation Institute of Australia, he began gaining practical experience in small and mid-tier accounting practices.

During the late 90s, Justin decided to expand his horizons and travel through Europe. It was during this time that he seized the opportunity to expand his knowledge on the workings of large organisations by taking on roles in multinational corporations.

Today, Justin’s passion is in facilitating businesses to grow and evolve. His focus is on acting in the role of business mentor to help clients develop the full potential of their businesses. He joins clients on their unique journey, and provides the tools and knowledge they need along the way to make the right decisions.

Justin’s aim for his clients parallels his own philosophy and personal journey—focusing on his own career growth and business success while maintaining balance in his life with his wife and three daughters.

Omnis Group Managing Director - Justin Flavel