Commonwealth legislation

A New Tax System (Goods and Services Tax) Margin Scheme Valuation Requirements Determination MSV 2005/2

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Collection

legislative instrument

Plain English Summary

1/10 complexity

This determination preserves a developer-friendly GST outcome by allowing the "costs of completion" way of working out the GST Margin to apply to contracts signed before 1 July 2005 even if settlement occurred after that date. It protects property developers and pre‑GST (pre‑1 July 2000) landowners who entered contracts before 1 July 2005 from losing that favorable margin treatment due solely to settlement timing.

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Current sections

Direct links to the current provisions in A New Tax System (Goods and Services Tax) Margin Scheme Valuation Requirements Determination MSV 2005/2.

A New Tax System (Goods and Services Tax) Margin Scheme Valuation Requirements Determination MSV 2005/2

A New Tax System (Goods and Services Tax) Margin Scheme Valuation Requirements Determination

MSV 2005/2

I, Neil Edward Mann, make the following determination for the purposes of paragraph 75-10(3)(b) of the A New Tax System (Goods and Services Tax) Act 1999 (‘the GST Act’).

Citation

1. This determination may be cited as the A New Tax System (Goods and Services Tax) Margin Scheme Valuation Requirements Determination MSV 2005/2.

Commencement

2. This determination commences on 1 July 2005.

Extension of costs of completion method – pre 1 July 2005 contracts

3. This determination extends the availability of Method 2 – Value as determined using costs of completion method (‘the costs of completion method’) in the A New Tax System (Goods and Services Tax) Margin Scheme Valuation Requirements Determination (No.2) 2000 to the calculation of GST on supplies made after 1 July 2005 under contracts entered into before 1 July 2005.

4. A valuation therefore complies with the requirements for making valuations for the purposes of Division 75 of the GST Act if the valuation is made:

(a) in accordance with the costs of completion method; and

(b) for the purposes of calculating GST on a supply made under a contract entered into before 1 July 2005, if the supplier could have used the costs of completion method under the A New Tax System (Goods and Services Tax) Margin Scheme Valuation Requirements Determination (No.2) 2000 but for the supply being made after 1 July 2005.

Dated this 27th day of June 2005

Signed by Neil Edward Mann
Deputy Commissioner and
Delegate of the Commissioner

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

1 A New Tax System (Goods and Services Tax) Margin Scheme Valuation Requirements Determination MSV 2005/2