GST change would hurt local mobile home owners

In a speech in Parliament today, Member for Lalor Joanne Ryan has urged the Abbott Government to overturn a draft Australian Tax Office (ATO) ruling that could see local mobile home owners facing higher rents.

The ATO has issued a draft decision on the Goods and Services Tax (GST) paid by park owners who are managing properties where mobile homes are based.

“If the ruling goes ahead, park owners will be hit by having to pay double the GST on leased sites,” Ms Ryan said.

“I am concerned that not only would this mean higher costs for park owners, but that these costs will be passed on to residents.”

“Mortgage stress and tenancy eviction are already massive issues in Wyndham. This is another housing pressure our community cannot afford.”

Ms Ryan said there were thousands of Australians permanently living in demountable or mobile homes in privately run home parks who could be affected.

 “They own their home but pay site fees of up to $250 a week. This ruling could mean an annual GST bill of up to $1200 a year if a 10 per cent tax is applied.”

“Many of the people who live in mobile homes are pensioners and families – this would be a cost they couldn’t incur. And yet we are still waiting to hear from the Coalition about the impact of the draft ruling.”

“Mr Abbott promised during the election campaign that there would be no change to the GST. In Government, Mr Abbott is again breaking a promise he made, showing time and time again that this is not the government Australian’s were promised.”

“I call on Mr Abbott to explain whether he supports the ATO’s ruling or not.”