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22 Jun 11 GST margin scheme – Addenda

On 22 June 2011 the ATO issued Addenda to three GST Rulings dealing with various aspects of the margin scheme. Each Addendum amends the relevant Ruling to reflect the decision of the Full Court of the Federal Court in Brady King Pty Ltd v FCT [2008] FCAFC 118; 2008 ATC 20-034; (2008) 168 FCR 558. The ATO’s view of this decision was outlined in a Decision Impact Statement which issued on 12 August 2008. Incorporation of this view into these rulings was delayed pending the judgment of Greenwood J in Aurora Developments Pty Ltd v FCT [2011] FCA 232; 2011 ATC 20-250. This judgment had the potential to provide further clarification on the issue of the time of supply and acquisition of real property. GSTR 2006/7 and GSTR 2006/8 are also amended to reflect the content of item 15.1.28 of the Building & Construction Industry Partnership issues register which dealt with representatives of incapacitated entities and the margin scheme.

The Addenda are as follows:

  • GSTR 2000/21A3: Goods and services tax: the margin scheme for supplies of real property held prior to 1 July 2000
  • GSTR 2006/7A3: Goods and services tax: how the margin scheme applies to a supply of real property made on or after 1 December 2005 that was acquired or held before 1 July 2000
  • GSTR 2006/8A3: Goods and services tax: the margin scheme for supplies of real property acquired on or after 1 July 2000.