Andrew Leigh

Over the weekend I issued a media release calling on Tony Abbott to overturn a draft decision of the Tax Office that could result in higher rents for pensioners and families living in mobile homes.

Media Release

Sunday 10 November, 2013

GST HIKE ON MOBILE HOMES BAD NEWS FOR LOW INCOME AUSTRALIANS

Assistant Shadow Treasurer, Dr Andrew Leigh, has raised concern about a new draft Australian Tax Office ruling that could see thousands of mobile home owners face higher rents.

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

The draft ruling, now out for consultation, will mean park owners are slugged double the GST paid on leased sites.

“Labor is concerned the ATO ruling would not just lead to higher costs for park owners but that those costs will be passed on to low-income Australians who permanently live in demountable or mobile homes.”

There are at least 3,000 Australians living in mobile homes in privately run home parks.  There are many more people living long term in mobile homes in caravan parks.

“Most people living permanently in mobile homes either as a lifestyle choice or as a last resort live in very basic conditions with minimal facilities and few amenities compared to conventional forms of housing. Many are pensioners and families doing it tough,” Dr Leigh said.

“Labor MP Justine Elliot has already spoken out about the impact of this draft ruling on her constituents on the NSW north coast. But we are yet to hear boo from the Coalition.”

“I call on the Abbott Government to explain whether it supports the ATO’s ruling.

“It is a concern given the skewed values and priorities of the Abbott Government which favour the most affluent, and hurt the most disadvantaged.” Dr Leigh concluded.

ENDS