New caravan GST to hit pensioners and low income families

This week the Australian Tax Office has issued a draft decision to apply GST on caravans and mobile homes for long-term sites in a move that will affect pensioners and low-income families.

This decision will mean that up to 100,000 people who own a mobile home but rent the site could soon have to pay GST for the first time. It is incredibly unfortunate news because the majority of people affected will include pensioners and low-income families.

These caravan owners pay site fees of between $100 to $250 a week to rent the land, so this decision could mean that they could face an annual GST bill of up to $1200 per year if a 10 per cent tax was applied.

The Coalition had promised not to increase the GST in their pre-election campaign and now seeking GST revenue from these lower income groups is a bizarre cash grab.

Opposition Leader Bill Shorten has spoken out about this and demanded the Prime Minister explain this decision and overturn the draft.

“Tony Abbott must explain why these people must all of a sudden stump up for GST,” said Mr Shorten.

It seems that the Australian Tax Office is trying to keep this one from quietly proceeding, but lets hope that somebody has the common sense to block it before it goes any further.

Do you live in a long term caravan site and are concerted about this draft bill?