Extra assistance for long term caravan park and boarding house residents

The Government will provide $33 million additional rent assistance to

low income earners which will benefit those renting accommodation, including

caravan park and boarding house residents, under The New Tax System.

This is part of an agreement between the Government and the Democrats

that the Indirect Tax Legislation Bill 2000 should now be enacted

without amendment ensuring all of the measures are in place and operative

prior to 1 July 2000.

As part of the agreement, the maximum rate of rent assistance will be

increased by another 3 percent to make a total increase of 10%, with effect

from 1 July, at an estimated cost of $33 million a year.

In addition, the Government will put in place a thorough education program

for the caravan park and mobile home sector to ensure that both operators

and residents are fully aware of both tax options and the pricing implications.

The Government will also ask the Australian Competition and Consumer

Commission to put in place an audit program to ensure that the pricing

structures of caravan parks and boarding houses do not result in increased

margins that capture the increased rent assistance.

Copies of the correspondence setting out the agreement are attached.

Contact: David Alexander

02 6277 6390

22 June 2000