Legislative Developments – 2012 – Margin scheme and subdivided land

On 28 June 2013 the Tax Laws Amendment (2012 Measures No.6) Act 2012 received royal assent. The amendment provides the valuation methods for determining the margin for a taxable supply of an interest, unit or lease where the real property supplied has been subdivided from land or premises previously acquired by the supplier.

The margin can be determined by reference to the corresponding proportion of either (as applicable):

  • the consideration for the acquisition or supply, depending upon the specific statutory requirements, of the interest, unit or lease
  • the approved valuation of that interest, unit or lease at the specified date
  • the GST inclusive market value of that interest, unit or lease at the specified day or time.

The amendment takes effect from the start of the first quarterly tax period after royal assent, that is, 1 July 2013.

Links to documents:

Exposure draft legislation

A consultation paper was released on 10 December 2010 and 12 submissions were received.  These documents can be accessed below

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