In all the current discussion about how to increase GST revenue, there seems to be an avoidance of one obvious area into which to expand the tax; short-term holiday letting.
From the start, this lucrative source of income has avoided the GST while benefiting from negative gearing. But hotels, hostels and bed-and-breakfasts pay GST. Why? Too hard? Surely not. Pressure from the development lobby? I wonder.
Taxing holiday-let houses properly might even result in some of the oversupply returning to badly needed residential housing.
Anny Reed, Byron Bay