GST law regarding the margin scheme was amended in 2005. The changes aim to ensure the appropriate amount of GST is collected when property is bought, sold, or otherwise transferred or acquired. In broad terms, the amendments relate to:• the buyer and seller being required to agree in writing to apply the margin scheme;• calculating the margin using the amount the seller actually paid for the property, rather than the sale price when the seller acquired the property• the treatment of inherited property under the margin scheme;• the treatment of supplies of amalgamated property under the margin scheme;• costs incurred when buying, developing or improving your property that cannot be included in the purchase amount used to calculate the margin; and• calculating the margin where supplies of real property have been made between members of the same GST Group, from a GST joint venture operator to a participant of the joint venture and between associates.The changes apply from 17 March 2005, except for the amendment that requires the buyer and seller to agree in writing to use the margin scheme, which applies to supplies made under contracts entered into on or after 29 June 2005.