Hartsuyker has GST concerns for mobile home park operators
COWPER MP Luke Hartsuyker has called on the Australian Taxation Office to overturn its draft decision to apply the GST to moveable home estates.
The ATO has released a draft ruling which, if adopted, would mean the full GST rate would apply to operators of moveable home estates when they lease a vacant site to a resident.
The ATO's final ruling, which does not apply to caravan parks, is expected to be released before May.
In a submission to the ATO's Commissioner of Taxation Mr Chris Jordan AO, Mr Hartsuyker said under the ruling residents in moveable home estates will effectively lose GST concessions.
"My concern is that many people living in moveable estates simply cannot afford any other form of home," Mr Hartsuyker said.
"One of the main reasons people choose to reside long term in moveable home estates is because of the low cost of housing.
"I have concerns that this decision will increase the cost of living for those who have least capacity to pay."
Mr Hartsuyker said the operating nature of moveable homes estates is very similar to retirement villages which are classed as commercial residential accommodation and subject to GST concessions.
"The facilities provided in moveable home estates are in many cases the same as caravan parks and retirement homes," he said.
"Owner operators of estates must also obtain council approval and are subject to strict licencing requirements. In my view they are effectively operating as a commercial residential accommodation and should therefore be subject to the same GST concessions."
Mr Hartsuyker said in addition to his submission to the ATO he had also made representations to the Assistant Treasurer Senator Arthur Sinodinos.
"Although the ATO's decision is made completely independent of government, I have taken the opportunity to draw my concerns to the attention of the Assistant Treasurer," he said.