Developers pay for GST issue
Several Canberra property developers will pay compensation for misleading and deceptive conduct.
It comes after legal action over the developers’ charging homebuyers GST on apartments.
The Federal Court has week ordered Belconnen Lakeview — part of the Hindmarsh Group — to pay a Canberra woman $29,914.
At the same time, a class action relating to the 136-unit Governor Place in Barton — a joint venture between the Morris Property Group and Doma Group — is waiting on the court to approve a $2.5 million settlement.
Both legal tussles were sparked by a NSW Federal Court finding in 2010 that GST was not payable on new units on leasehold land, as they are not considered new.
All land in the ACT is leasehold and the decision came down during an apartment boom, suggesting GST may have been incorrectly charged to buyers in more than 20 projects.
A third case against a different developer has already been put before the Federal Court, and is listed to next appear in court in October.