It has recently been announced that a Class Action is being mounted against a number of ACT property developers who may have incorrectly included GST in the purchase price of off-the-plan residential units.
Investigations into the potential claim are ongoing.
The proposed Class Action applies to ACT residential units only and is being funded by IMF Bentham with the assistance of Sydney law firm, Corrs Chambers Westgarth.
The action arises as a result of the ACT’s unique leasehold system and a loophole (which has since been rectified!) in Australian taxation laws.
It is alleged that the sale of these ACT residential units should have been input taxed and as such GST may have incorrectly been included in the purchase price of these units.
The result is that developers who included GST in the purchase price may have taken up to a 10% windfall.
Presently, the following ACT property developments have been identified in the proposed Class Action:-
Vantage Oracle Altitude Axis
Arte Avoca Kingston Place Wilara
Lakefront Mayfair Verve Vue Apartments
Manhattan on the Park 2913 Apartments Astin Apartments Aurora
Sorrell Apartments Governor Place Dockside Element
New Acton South Nishi Newtown at Crace Realm
You may potentially be eligible to join the Class Action if:-
- You purchased the ACT residential unit directly from the developer;
- The property transaction settled in the last 6 years; and
- The Contract stated that the property was sold as a “taxable supply” (this information can be found on page 2 of the Contract or in the special conditions) and included GST.
To participate in the proposed Class Action it is necessary to engage IMF Bentham and Corrs Chambers Westgarth before the proceedings are filed. We accordingly encourage those interested in joining the Class Action to register your interest with IMF Bentham as soon as possible.
Further information on registering your interest can be found here.
Participation in the Class Action is voluntary and it will be necessary to enter into agreements with both IMF Bentham and Corrs Chambers Westgarth. We recommend that anyone looking to join the Class Action seek suitably qualified legal advice regarding these documents so as to properly assess their exposure to costs and other litigation risks.
Whilst Tetlow Legal is unable to provide this advice to you, we are happy to recommend the names of local solicitors who regularly practice in this area of the law, and who can properly advise you on these matters.
If you are unable to locate a copy of your Contract, or have any further questions regarding the application of GST to your Contract, please call either Brian Tetlow or Emma Bragg on (02) 6140 3263 or email [email protected].
Last updated 31/10/2016