GST margin scheme calculator
Selling property under the GST margin scheme? You pay GST of one-eleventh of the margin, not one-eleventh of the whole price. The margin is the sale price less what you paid (the consideration method), or less an approved valuation (the valuation method). Enter the figures to get the margin, the GST for 1A and G1 on your BAS, and the difference from normal GST. There's also an area split for subdivided lots. Figures reproduce the ATO's worked examples.
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CalculatorHow it worksExamplesFAQ
How the margin scheme works
- Margin = sale price − purchase price (consideration method), or sale price − approved valuation (valuation method).
- GST = margin × 1 ÷ 11. Report the margin at G1 and the GST at 1A.
- The purchase price doesn't include stamp duty, legal or conveyancing fees, or development and construction costs. Claim GST credits on those separately if you have tax invoices.
- You and the buyer must agree in writing to use the margin scheme, usually in the contract, before settlement. The buyer can't claim a GST credit.
- The valuation method is mainly for property held before 1 July 2000 and needs an approved valuation.
- For subdivided land, split the purchase price between lots on a reasonable basis, such as area.
Examples (ATO)
| Example | Margin | GST (1A) |
|---|---|---|
| Spalding Homes, valuation method: $1,440,000 − $1,000,000 valuation | $440,000 | $40,000 |
| CarterBuild: $515,000 − $150,000 (credits $20,000 on $220,000 building costs) | $365,000 | $33,181 |
| Jamie: $330,000 − $220,000 | $110,000 | $10,000 |
| John: $900,000 − $500,000 | $400,000 | $36,363 |
| Diane: $720,000 − $500,000 | $220,000 | $20,000 |
| Matt: $550,000 − $220,000 approved valuation | $330,000 | $30,000 |
| JWDev: 800 m² of a 2,000 m² block bought for $240,000 ($96,000), sold for $140,000 | $44,000 | $4,000 |
FAQ
How do you calculate GST under the margin scheme?
Take the sale price, subtract the purchase price (or an approved valuation), and divide the margin by 11. For example, a house and land sold for $515,000 on land bought for $150,000 has a $365,000 margin and $33,181 GST.
What do I report on my BAS for a margin scheme sale?
Report the margin at G1 total sales and the GST, one-eleventh of the margin, at 1A. In the ATO example, a $330,000 sale of land bought for $220,000 reports $110,000 at G1 and $10,000 at 1A.
Can I include building costs in the margin scheme purchase price?
No. The purchase price is only what you paid for the property itself. Construction and development costs, stamp duty and legal fees aren’t included, but you can claim GST credits on the costs that have tax invoices.
Can the buyer claim GST credits on a margin scheme purchase?
No. When the seller uses the margin scheme, the buyer can’t claim a GST credit for the purchase, even if they’re registered for GST.
When can I use the valuation method?
Mainly for property you held before 1 July 2000, or in the other cases the ATO lists, using an approved valuation such as a professional valuation at the relevant date. Otherwise use the consideration method, which uses your purchase price.
Sources (checked 17 Oct 2026): ATO GST and the margin scheme; Methods to calculate the margin; Calculating the GST payable.
General information, not tax advice. Whether you can use the margin scheme depends on how you bought the property, and some purchases (such as fully taxable ones) rule it out. This doesn't cover associates, going concerns, GST groups or the special valuation dates. Check the ATO pages or ask a registered tax agent.