GST Valuations - Margin Scheme

GST & Margin Scheme Valuations

Leeson Valuers provides independent property valuations for GST and Margin Scheme purposes, including valuations of land and development sites as at a specific historical date.

A valuation may be required where land has been acquired under circumstances where the GST Margin Scheme is applicable and the property is subsequently subdivided, developed or sold. Establishing the market value of the relevant land at the required valuation date can be critical to determining the appropriate GST treatment.

Margin Scheme Valuations

The GST Margin Scheme generally calculates GST based on the margin between the property's relevant acquisition value and its subsequent sale price, rather than the full sale price.

Where land has been subsequently subdivided, the original acquisition value may need to be appropriately apportioned across the resulting lots. A retrospective valuation can assist in establishing the relevant market value at the required date for GST purposes.

For example, a property may originally be purchased as a large parcel of land containing a single dwelling. The owner subsequently subdivides the property, retaining the existing dwelling on one lot and creating two additional residential lots.

The existing dwelling lot may be treated differently for GST purposes, while the newly created lots may be subject to GST when subsequently sold. Where the Margin Scheme is applicable, a valuation of the land as at the relevant acquisition date may be required to assist in determining the GST margin attributable to the newly created lots.

Retrospective Development Site Valuations

Leeson Valuers can provide retrospective market valuations of land and development sites at specific dates, including:

• Acquisition dates;
• Pre-subdivision dates;
• Dates prior to development or redevelopment;
• Dates specified by accountants or tax advisers; and
• Other relevant dates required for GST and taxation purposes.

Our valuers consider the property's characteristics, planning controls, development potential, market conditions and comparable evidence applicable at the relevant valuation date.

Independent Valuation Evidence

GST and Margin Scheme matters can involve complex interactions between property transactions, subdivision, development and taxation requirements. An independent valuation provides objective market evidence to assist property owners, developers, accountants, solicitors and tax advisers in determining the appropriate value for the relevant GST calculation.

Leeson Valuers provides current and retrospective property valuations supported by appropriate market evidence and valuation methodology.

If you require a valuation for GST or Margin Scheme purposes, Leeson Valuers can provide an independent assessment of the property's market value at the relevant date.