The Margin Scheme: Complexities in Practice
The margin scheme is central to the property development industry. This session reviews the key concepts in understanding how the margin scheme framework operates, including:
- The role of tax invoices
- Understanding the requirement for an agreement in writing
- Record keeping:
- calculating the margin
- calculating the consideration for the acquisition of subdivided land or stratum title units
- Dealing with amalgamated land
- Effect of the margin scheme – no input tax credits available to purchaser
- Valuation issues – is the valuation provided on a GST inclusive basis?
- Getting GST advice early – what questions should the adviser ask?
- Lessons from recent case law
Sale of a Going Concern - Risk Management Checklist
The sale of a going concern still raises compliance issues. The transaction has to be considered from the supplier’s perspective. This session covers an essential compliance checklist for gaining the GST exemption, including:
- Have the parties agreed the sale will be of a sale of a going concern?
- What if seller has different entities owning different parts of the business?
- Recovery of GST where going concern exemption does not apply
- Purchaser and vendor warranting they remain registered until time of completion
- Transfer of employees on transfer of going concern
- Dealing with partly tenanted or vacant buildings
- Can a tenant of commercial property purchase that property as going concern?
- Can a corporate trustee of a fund satisfy the going concern exemption?
- Property has a commercial and residential lease – is whole property a going concern?
- Case update
GST Hotspots in Student Accommodation, Co-Living and Other Shared Accommodation Arrangements
Student accommodation has been an area of GST debate and dispute for a number of years, but now there are other forms of shared accommodation arrangements which raise their own GST issues. This session provides an update on GST in the context of shared accommodation, including:
- Understanding the categories - what is co-living and how does it differ from student accommodation or boarding houses?
- Demountable home parks and moveable home estates as shared accommodation.
- Understanding the regulatory issues around boarding house legislation and council requirements
- Identifying the appropriate classification for GST?
- are all shared accommodation arrangements commercial residential premises?
- understanding ECC Southbank Pty Ltd as trustee for Nest Southbank Unit Trust v Commissioner of Taxation  FCA 795 and its application to other shared accommodation arrangements
- Understanding the implications - importing the concept of commercial residential premises into MIT, FIRB and state taxes
Long-term Leases and Development Agreements: The GST Challenges
The grant of long-term leases over government land can give rise to interesting GST challenges. This is especially the case where the government imposes requirements for works to be done as a precondition of granting the long-term lease. This session considers:
- The characteristics of development lease arrangements
- Understanding GSTR 2015/2:
- what is non-monetary consideration?
- determining the value of non-monetary consideration
- accounting for GST
- Taxpayer Alert 2018/3 – what types of arrangements are the ATO cautioning against?
- Understanding the different rules for not-for-profits and commercial developers
- Lessons from Barton Partners and Belconnen Lakeview class actions
ATO Compliance Regime – Understanding the Regulator from a GST Perspective
This session examines the ATO compliance approach and the best way to manage the client ATO relationship when dealing with GST compliance for property transactions. It includes:
- The ATO GST compliance approach – an overview
- Understanding the types of data the ATO uses in assessing compliance
- GST record keeping and reporting of transactions
- Practical case studies