Ann Sudmalis (Gilmore, Liberal Party) Share this | Link to this | Hansard source

I take this opportunity to bring to the notice of the House the issue surrounding the ATO draft ruling on the GST treatment of the relocatable homes industry. The problem was brought to my attention by a number of Gilmore residents living in these homes. Since first learning of this matter, I have investigated how the draft ruling was initiated. In 2011, it appears that the ATO was asked by key tax and accounting bodies in an external submission to clarify how the GST was to be applied to caravan parks and moveable home estates. Then, in December 2012, the ATO made the decision to review how the GST was applied specifically to these moveable home estates. The announcement of the draft ruling was delayed. It is unlikely we will resolve the reason for that delay. However, this information was not given to the public until recently.

At this point it is important to keep in mind that the ATO are independent of the government, but they must communicate all rulings and draft proposals. With this background information, I worked with the Assistant Treasurer to establish how best to help my Gilmore residents who might be effected by the introduction of this ruling. People in Gilmore who have chosen to live in mobile home estates do so for many reasons, but the one that has the greatest bearing in this entire situation is the one relating to cost. In an area of very limited availability of affordable housing, the mobile home parks have provided a safe, manageable, cost-effective haven for many who are economically challenged. They are on fixed and limited incomes and must watch every dollar they spend.

I wrote to all my local Gilmore mobile home residents letting them know the background and the way to make an individual submission to the ATO. The Taxation Commissioner needs to know just how this ruling, if made substantive, could impact on their cost of living and budget survival. My office has been inundated by letters and calls on this matter. We have received well over 200. Their stories are worth repeating. Eileen Dyson of Ulladulla is a widow. She is an aged pensioner and is also partly responsible for the upbringing of her 15-year-old granddaughter. The park owner where she lives has indicated that her rent will be going up by $21 a fortnight. She can barely make ends meet now and the extra burden will stretch her budgeting ability to breaking point. Leone Piggott of Bomaderry is horrified about this potential extra cost. During the last three years she has dealt with two forms of cancer, melanoma and breast cancer. We can only imagine how high her medical bills are. Over the recent past with the huge increases in electricity prices, her cost of living has increased drastically. As an aside, we can see yet another impost from the carbon tax and how it has impacted on everyday living for everyday Australians. The extra cost of GST on her site rental is appalling.

Mrs Burke explains that after paying the nursing home care for her husband, as well as her site fees at her current level, her cost is $860 per fortnight, leaving her with less than $400 to pay for her power, house insurance and upkeep, as well as run a car so she can visit her husband of 48 years. There is no public transport for her. In her words, 'any increase would be a great hardship'. Mr William London, a widower also of Bomaderry, makes a great point in his letter. He chooses to live in this location because it is affordable and if he sought public housing instead of purchasing a mobile home, he would be an additional cost to the government. He is concerned that he will no longer be able to afford the healthy food options and be forced to choose less healthy options.

Mr and Mrs Krieken-Beek live in a manufactured home in Ulladulla, also because of the affordability factor. Mrs Krieken-Beek has undergone two operations for cancer, followed by radiation therapy. Mr Krieken-Beek has been diagnosed with vascular dementia. He recently had a fall and needed respite accommodation, and because he fell on Mrs Krieken-Beek she now has broken bones to mend. Their cost of living is already compromised by having to pay for lengthy respite and many medications. They are both on age pensions and limit fixed income.

Roy and Elizabeth Allman of Bomaderry are deservedly proud of the fact that they pay for the complete upkeep of their relocatable home, their power, gas, water and phone. Roy is now blind due to macular degeneration and his prostate cancer has spread to all his bones. They have significant medical costs and require catheters and mobility aids. They too cannot use public transport—there is none—so they must drive their 1999 Ford.

I stand here to support these residents to state for the benefit of the House that the ATO should not follow through on this draft ruling. Gilmore has 28 mobile home parks; some have less than 10 sites and some more than 400. They are located across the entire electorate from Merry Beach in the south to Surfrider in the north. It is clear from the stories told here that this potential GST impost will really affect the quality of life for so many. Gilmore residents who live in these locations because very often it is their only choice. Residents renting in more traditional locations are not paying GST and, in the words of so many, it is unfair. (Time expired)

Jill Hall (Shortland, Australian Labor Party) Share this | Link to this | Hansard source

I rise to speak on exactly the same issue as the member for Gilmore. I stand in this place on behalf of in excess of 5,000 residents in Shortland who are set to be hit by this GST on the rental if it is introduced. I urge all members on the other side of this House to take a lead from the member for Gilmore and stand up for the residents whom they represent who live in residential parks. In 2000 when the GST was introduced, quite a battle took place here in relation to imposing a GST on the rental people pay who live in residential parks. At that time, those advising the government did not understand that these were quality homes that people lived in and that the only rental they paid was on the sites where their homes were located. It seems to me that those same bureaucrats are once again showing that they do not understand the issue for people who live in residential parks. They do not understand what an impost this will be on those residents.

In the remaining time I have in this debate, I want to share with the House some of the comments I have received from residents whom I represent who live in relocatable homes. Firstly, Mrs Elizabeth Wenham is most upset by the draft ruling and sees that this will be a major change for her if this introduced. She is very upset that what was decided in 2000 is in danger of being changed. This is a form of affordable housing, and a GST is going to make it much less affordable, and it is treating people who live in residential parks differently to others.

These letters I am referring to are all from residents of Bevington Shores at Halekulani. Edward Quinton says that he is an age pensioner and pays rent on his site, that he will not find the GST on top of his medical bills, and that he will find 'extreme hardship to live and maybe that is what they want'. Len Shaw says: 'I am on a pension and cannot afford a 10 per cent GST on my site. Please, I would be grateful if the office does not go ahead with this. As an age pensioner, no to this 10 per cent GST.' Another resident of the park, S Sharp, says: 'I also want the classification of GST changed so pensioners will not miss out on vital rental assistance. As an age pensioner I find this 10 per cent increase on rental costs totally unjustified. As a returned serviceman and TPI pensioner, I find the increase of 10 per cent unacceptable.' Gail Green says: 'As a pensioner, I already find it difficult to pay my rent. A 10 per cent increase on top will make it almost impossible.' Maree Crockett says she pays enough out of her pension without having to pay an extra 10 per cent. Another resident says a GST will impact on the standard of living. Ann Daley says the proposed 10 per cent increase in the cost of living will be 'an unfair burden on pensioners'.

I have here about 500 letters that I will forward to the ATO. In addition, I have a number of other letters written to me. The core of this issue is that these are pensioners, older people and people on fixed incomes who cannot afford the GST. I call on the government to talk to the ATO and ensure that this cruel 10 per cent GST increase on their rents is not implemented.