Plus GST

Hi
I’m new to this forum, so please be nice.

I am looking at a Contract of sales in front of me for the state of Victoria.The seller is a company. In the right hand side box next to payment part, it says “plus GST” and in another box it says “margin scheme”

The unit is open for offer. I have 2 questions.
1. If I put an offer in, should I write to the agent. My offer is $X plus GST?
For instance $800000 plus GST or should I offer $880000 inclusive of GST?

2. Say if accepted, say seller happy with above offer. The contract payment part looks like this.

Payment
Price $-________
Deposit $ _______by (of which $____ has been paid)
Balance $________payable at settlement

Should it be filled in like this?
Payment
Price $800000
Deposit $ 72727.27by (of which $72727.27 has been paid)
Balance $727272.73 payable at settlement


I am willing to pay $880000 all up.
So after signing the contract, I still write a bank cheque for deposit of $80000 (being $72727.27 plus gst) although it says above only $72727.27 has been paid.

Does that look right?

3. How does margin scheme work?

Can any expert from this forum advise?

 

1. Speak with your solicitor and get them to explain the contract to you and any concerns or questions you may have
2. You are about to commit yourself to an $800,000-900,000 purchase - do you qualify for finance?
3. Have you consulted your accountant regards GST and tax planning?
4. Is this property completed or off the plan?
5. Are you a first home buyer?
6. Is this a commercial property/development site/part of an ongoing business?
7. Refer to point 1.

 

You don't say what you are buying other than 'a unit'.
Why do you think GST would apply?

why are you not seeking legal advice before entering a contract?

 

Sorry it’s not a unit my hubby just told me. It’s a Existing dwelling unit and comes with permit for luxury townhouse.
I want to see what’s the deal with the gst before deciding to even ask the solicitor to look at it.

 

What does this mean? Either quote the contract or explain it in your own words. The jargon makes no sense.

 

The other question is
It comes with permit but do I have to use it? We’re going to just live in it

 

Well it’s got a unit now. It has permit approved for a townhouse.

 

GST and property

 

The current owner has had plans prepared and a permit approved, you will be paying more than its worth for just a residence.

 

I would always recommend a offer INCLUSIVE of GST as it is more a precise value. You dont know if GST is 1/11th or $0