Premier calls for ATO to rule out GST rent slug

Premier Campbell Newman has called on the Federal Government to rule out a proposal by the Australian Taxation Office to slug families extra tax living in permanent caravans.

Mr Newman said he would fight for the 30,000 Queenslanders who live in permanent caravans and demountable homes across the state’s accommodation parks who will soon be hit with, in some cases a 10 per cent increase to their rents.

“I’ll be making it clear to the Federal Government that adding GST to the rent paid by families on their permanent caravans in parks is just not on,” Mr Newman said.

“This draft plan earmarked by the A.T.O. is quite frankly unfair and the Queensland Government is calling on Joe Hockey to reject the plan immediately to give these people certainty.

“The GST paid by these residents would ultimately filter back to the State budget, but in this case, I‘ll be saying we don’t want it.

“Families living in these dwellings shouldn’t be hit with this burden while others living in an apartment or a house are exempt from paying GST on their rent – it’s just not fair.”

The ATO ruling would see the rent paid to caravan parks or accommodation providers by a permanent tenant increase by up to 10 per cent.

Mr Newman said in many cases residents would feel trapped because to remove their home from a park, should they disagree with the increase, is too expensive costing around $20,000 to $50,000.

“The plan to add GST to removable homes could slug anywhere from $15 to $30 dollars per week and put simply, this is around $1000 per year that they simply can’t afford,” he said.

The draft ATO ruling would apply to mixed-use parks which have both long term residents and temporary sites for caravans or tents.

[ENDS] 27 November 2013

Media Contact: Premier’s Office 3719 7000