Common use of Margin Scheme Clause in Contracts

Margin Scheme. Warning The Seller is warranting that the Margin Scheme can apply. If in doubt about using the Margin Scheme you should seek professional advice. (1) the Purchase Price includes the Seller’s liability for GST on the Supply of the Property. The Buyer is not obliged to pay any additional amount to the Seller on account of GST on the Supply of the Property. (2) the Seller: (a) must apply the Margin Scheme to the Supply of the Property; and (b) warrants that the Margin Scheme is able to be applied; (3) if the Seller breaches clause 11.6(2)(a) or its warranty under clause 11.6(2)(b) then: (a) the Buyer may terminate this contract if it becomes aware of the breach prior to the Settlement Date; (b) if the Buyer does not terminate this contract under clause 11.6(3)(a) or does not become aware of the breach until after the Settlement Date, it must pay to the Seller an amount equal to the Input Tax Credit which the Buyer will receive for GST payable for the Supply of the Property. Payment must be made when the Buyer receives the benefit of the Input Tax Credit; (c) the Buyer is entitled to compensation from the Seller if there is a breach of clause 11.6(2).