Fair Trading Minister Doug Shave has asked Federal Treasurer Peter Costello to assist people who were told by builders that their new homes would be completed before the introduction of the GST.
“I have written to Mr Costello and asked him to review the situation of people who were building a home during the transition to the new tax system,” Mr Shave said.
“I have received complaints from people who signed contracts for a new home and were assured building would be completed before the GST.
“That didn’t happen and they now face significant GST costs before their homes are finished.”
It appeared some builders knowingly took on more work than they could complete before July and gave unrealistic undertakings on how long construction would take.
"I have asked the Treasurer for a moratorium on GST payable on home building contracts entered into for work due to be completed before July, or to pay a GST rebate,” Mr Shave said.
“First homebuyers can get a grant to compensate for the GST and new home-builders who were told work would be finished before the GST should receive similar assistance.”
Mr Shave said people who believe GST has been wrongly charged under their contract are entitled to lodge a formal complaint with the Building Disputes Committee.
The Australian Competition and Consumer Commission was also taking complaints from home-owners about builders who might have made false representations about the completion date of construction.
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