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GST anomaly hits first home-owners.

GST Anomaly Hits First Home-Owners

 

Simon Crean - Shadow Treasurer

 

Media Statement - 15 March 2000

 

Peter Costello today displayed embarrassing ignorance about an enormous anomaly in the First Home Owners' Scheme - his own GST compensation program.

 

The thousands of Australian who will contract to build their first home before 1 July will face GST on some or all of the cost of their home.

 

Yet they will not qualify for the First Home Owner's Scheme.

 

The Government's own GST website makes it clear that Australian home-buyers signing a contract before 1 July, to build their first home, will have to pay GST on that part of the house built after 1 July.

 

But under the Scheme's guidelines and the Intergovernmental Agreement on the GST, only those "entering into a binding contract …on or after 1 July 2000" qualify for the grant.

 

Mr Costello was either unaware of this unfair and discriminatory treatment, or he knows and doesn't care.

 

Either way, many of Australia's home-buyers are being sold short.

 

Authorised by Gary Gray, 19 National Circuit, Barton ACT 2600.