By CAMERON LUCADOU-WELLS
RESIDENTS paying the Keysborough Maintenance Levy will receive a goods-and-services tax refund of up to $105 after a favourable ruling from the Australian Tax Office.
Greater Dandenong Council had applied for a GST-exemption on the council levy, which was imposed on about 2400 households for the upkeep of open space in Keysborough housing estates.
The council will provide a refund, or a credit on next year’s rates or the second instalment of rates due 30 November.
“Where residents have already paid the entire rates in full for 2013-14, then the credit can either remain on their rate account for the following year or a refund can be provided,” the council’s corporate services director Mick Jaensch said.
Councillor Jim Memeti, who initiated the council’s enquiries into the matter, said the refund was “a good start” towards reducing the $350 levy.
“As more and more houses are built in the area, I think the council should look at reducing the levy. Residents in Keysborough are already paying among the highest rates in the municipality.”
The ATO found the levy was GST-exempt because it met the definition of a tax.
The exemption applies from 1 July 2011 resulting in a refund of the levy’s $35 annual GST component – totalling $208,180.
