Wyndham seniors living in mobile homes fear they will struggle financially if the tax office goes ahead with plans to increase their rent by 10 per cent.
Under a draft Australian Tax Office ruling, people living in mobile homes would be forced to pay GST on their site rental for the first time. The ruling overturns a Howard government decision to make mobile homes GST-exempt because they were deemed residential premises.
The ATO’s draft ruling stated a moveable home did not fall within the definition of a commercial residential premises and, as such, should not be exempt from GST.
Residents of Werribee’s Ison Village fear they will have to pay an extra $700-$800 a year in rent if the ruling is passed when the tax office makes its final decision next year.
The village’s residents pay about $160 a week to rent the site their mobile homes are on. “A lot of people living here are already on the breadline,” resident Bob Curtis said. “If this ruling is passed it will affect a lot of people.”
Mr Curtis said the proposed changes would hit about 900 Wyndham residents.
Lalor Labor MP Joanne Ryan has raised the issue in Federal Parliament, urging the government to overturn the draft ruling.
“Mortgage stress and tenancy eviction are already massive issues in Wyndham. This is another housing pressure our community can’t afford,” she said. “Many of the people who live in mobile homes are pensioners and families – this would be a cost they couldn’t incur.”
ATO commissioner Chris Jordan said the tax office had not made a final decision. The office was willing to listen to the concerns of mobile home owners and would accept submissions until December 20.
“We have issued a draft ruling so the community and stakeholders can comment and raise any concerns.”
