GST margin scheme proposed changes: consultation paper released
The Assistant Treasurer has released a consultation paper on proposed changes to the GST margin scheme provisions contained in Div 75 of the GST Act. He said the proposed measures "will clarify and simplify the GST margin scheme provisions, reducing compliance costs for a wide range of businesses involved in the building and property industry".
Broadly, the Government proposes to: (i) restructure the Division to give prominence to core provisions with exceptions set out separately and insert objects clauses for the key provisions so that the Government's intention is clear; and (ii) allow an approved valuation of land or premises to be used for calculating the margin on subdivided land for the purposes of the margin scheme. The proposed measures will apply from 1 July 2012, and implement Recommendation 22 of the Board of Taxation's Review of the Legal Framework for the Administration of the GST.
The full consultation paper is on the Treasury website and submissions close on 21 January 2011.