Being a developer

The 7% is just withholding. This suggest the vendor couldnt make a $$$ out of the project and is offloading it but perhaps they also cant and dont want to pay the further holding costs which are now non-deductible and later "maybe" make a profit.

The developer worksheet (excel) used to be part of the kit but too many people just self-diagnosed so we stopped. Its provided to clients

The toolkit is intended to assist education prior to advice so we dont spend 2 hours educating before we get to advice on the client specific issues. I always caution that legal advice on the contract PRIOR to bidding or buying land is critical. I cant tell you how many people I have seen make mistakes with buying land they cant sell using the margin scheme. Relying on websites etc is not a substitute.

A developer video series for our PAS TV channel is coming ......I'm even thinking of a live stream session when its up.

 

It is the government selling Mr Fluffy blocks. I missed out anyway. A couple REALLY wanted it. For me its just a numbers game.
This whole area is difficult to understand but definitely worth spending some time on getting advice and getting it write. As I said, it can easily break your project.

 

Hi Paul,

Thank you for developing the 2020 developer toolkit. I have learned a lot from it.

I have a question regarding the Marginal Scheme example provided in your toolkit.

In Section 7.7 (page 29) you mentioned that Devco Pty Ltd paid GST of $45,455 instead of $ 100,000.
I think Devco Pty Ltd may have paid $22,545 (page 28, paragraph 3). Because they got a deduction for land $ 54,545 and construction $32,000.

Just want to confirm that the marginal scheme allows to land and construction value to be deducted from the selling price and GST calculated on the remaining margin.
Thanks