GST rules may change for moveable home estates

Addressing the current misinformation being circulated regarding the Australian Taxation Office's draft ruling on GST for moveable home estates, Commissioner Chris Jordan said that a decision was yet to be made.

The current ruling is still in draft form, and community and stakeholders are welcome to comment.

“We have not made a final decision about charging GST on moveable home estates,” Jordan said.

“There has been a bit of public misunderstanding and I just want to make clear that the draft ruling does not apply to caravan parks and won’t come into play retrospectively," he said.

Released for consultation on 30 October 2013, the Draft ruling Goods and services tax: supplies made by an operator of a 'moveable home estate' (GSTR 2013/D2) has a preliminary view that a moveable home estate does not fall within the definition of commercial residential premises, as it is not sufficiently similar to a caravan park.

This is due to the more long-term nature of the estate, something that is suggested to have changed over the years.

Therefore, operators would not be able to apply the concessionary treatment of Division 87 of the GST Act to the supply of long-term accommodation to residents.

Submissions close on December 20, with a final ruling expected for mid-2014. Taxpayers are urged to remember not to change their current approach until the final ruling is published.

Feedback can be submitted via (07) 323 8417 or via steven.iselin@ato.gov.au

jduke@propertyobserver.com.au