Unfair Application of GST

Convener: Offers sought

To consider the application of GST to levies collected by larger owners corporations whose budgets went over the threshold and to things like water supply on which ordinary householders are not charged GST.

The application of GST to Strata levies is very unjust - we have to pay the government 10% on our sinking fund savings! Those living in strata units are the only people in Australia who have to pay such a tax on savings. When the GST came in it was widely assumed that it would not apply to strata levies - indeed the ATO issued rulings saying it would not. Excluding strata levies would have been fair and sensible as, when all is said and done, we are simply groups of neighbours, not a trading corporation. You might have thought this was one of the first injustices the new federal government might want to address, but when it recently reviewed the GST, it refused to consider the matter. The ACT OCN will work with OCN organisations in NSW and Queensland to commence a lobbying campaign about this injustice - the campaign will focus on stories about paying GST on Sinking Fund levies, as it is here the injustice is greatest.

Lobbying is a protracted process, requiring political patience,  force of numbers and a determination to get there despite setbacks. We will persevere.