Amounts can be entered as GST Inclusive, GST Exclusive or GST Exempt anywhere in the platform. Feasly standardises everything to Ex GST for consistency across the feasibility.
Why Ex GST
GST is generally claimable and not a real cost to the project. Including it would overstate project costs and understate returns.
Keeping GST separate means profit margins, return on equity, LVRs and funding requirements all reflect true project economics, and GST is tracked separately so it does not interfere with feasibility logic.
The Margin Scheme
Australia only.
Under the Margin Scheme, GST is calculated on the margin, being sale price less cost base, rather than on the full sale price. Less GST is remitted, which improves free cashflow and increases net project profit.
Where the Margin Scheme is applied in Land, Feasly calculates the estimated benefit automatically and carries it through the platform and reports.
The Margin Scheme cannot be applied where GST is included in the land purchase price. Seek professional advice to confirm eligibility before purchasing land.
Income Tax
Set the Project Income Tax Rate in Financial Settings, or in the Equity Distribution report settings. The two stay in sync.
The rate is applied in the Profit & Loss report to estimate income tax liability. The resulting post-tax profit becomes the opening balance in the Equity Distribution report.
Feasly provides a structured financial framework rather than a complete accounting treatment. Existing tax credits, prior-year losses and entity-specific positions are handled in accounting software. Confirm any tax position with a qualified adviser before making financial decisions.