Fed: Govt to take a close look at retirees taxes

AAP General News (Australia)
08-10-2004
Fed: Govt to take a close look at retirees taxes

CANBERRA, Aug 10 AAP - The federal government has promised to take a closer look at
taxes paid by retirees living in retirement villages, after complaints some residents
have been charged an extra $50 a month.

Elderly people who receive nursing or daily living assistance pay no GST on their accommodation
or services provided, whether they live in a nursing home or supported accommodation.

Residents of retirement villages who live independently are not exempt from GST, just
like older people living in their own homes.

But there is a grey area over some services provided by retirement villages, such as
whether assistance with bathing and home visits from nurses should qualify residents for
GST breaks, worth about $50 a month.

The Australian Taxation Office has been consulting with industry and plans to release
draft rulings on the GST status of retirement villages soon.

Revenue Minister Mal Brough said the ATO was right to make sure retirement villages
did not wrongly claim GST exemption, but would seek a meeting with Tax Commissioner Michael
Carmody and industry groups.

"The government understands that as care of the elderly evolves, it increasingly entails
a continuum of care that makes the drawing of boundaries difficult," Mr Brough said.

The coalition faced a backlash from pensioners at the last election over GST being
charged on long-term caravan park rentals and is keen to defuse the latest controversy
before going to the polls.

AAP kmh/sb/tma/sd

KEYWORD: TAX RETIRE LEAD

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