The Government will make changes to Tax Laws Amendment (2005 Measures No. 2) Bill 2005 to ensure the GST real property amendments in Schedule 6 do not have any unintended consequences.
The Government proposes to:
- change the requirement to obtain written agreement for the use of the margin scheme, so that it no longer affects contracts entered into before the date of Royal Assent, but which settle afterwards. The amendment will also no longer affect rights or options granted before Royal Assent
- remove the new rules for calculating the margin for the supply of real property that was initially acquired as a GST free going concern, or GST free farm land. The Government intends to undertake further consultation with industry on these proposed rules to ensure the margin scheme applies appropriately to supplies of real property
- make a number of minor changes to address mainly technical issues, including in respect of the grouping, joint venture and deceased estate provisions.
'Since the Bill was introduced into Parliament, the Government has been undertaking extensive consultation with the property development industry and the changes announced today address industry concerns', Mr Brough said.
Tax Laws Amendment (2005 Measures No. 2) Bill 2005 was introduced into Parliament on 17 March 2005. The GST real property amendments are largely tax integrity measures.