We have just released a new feature in Aprao which allows you to factor in GST on the sales revenue of a development. This new feature also allows you to apply the margin scheme if it is applicable.
These sales tax calculations can make a big impact on development returns. With this new feature, we've made it easy to factor these tax costs into your development project and help you make faster, data-driven decisions on your developments.
Let's take a look at how this works
We've introduced a new button on the project screen which is where the new tax settings belong. You can customise the tax settings on a per-project basis.
You can simply toggle the sales tax on and off using the toggle button. When it's switched on we can give the sales tax a name: in Australia it's GST. We can also set the tax rate, which in Australia tends to be 10%. We select if the margin scheme applies to this development and then when we are happy with the settings we click OK.
Now GST has been applied to the project, GST on sales is displayed in the revenue section of Aprao.
The GST is also visible in the feasibility report on the revenue summary, and in the revenue breakdown sections. It is clearly labelled as "GST on Sales."
Finally, a new line has appeared in the cash flow forecast showing the GST on sales. This will also be included in the cash flow Excel export.
What is the margin scheme?
The margin scheme is a tax structure that applies to some property developments in Australia where the developer can offset the purchase of the development site against the amount of GST that is payable on the sales - essentially reducing the tax liability on a site.
For full details on the Australian margin scheme, visit the ATO website or speak to a tax specialist to see if it applies to your project.
Try it for yourself!
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