The draft ruling will now be withdrawn and moveable home estates will continue to be treated as commercial residential premises with the same GST rules for long-term accommodation.

“Over the past seven weeks, we have been considering a range of submissions from the community and stakeholders as part of our consultation process,” Tax Commissioner Chris Jordan said.

“We have carefully considered the legal arguments and practical implications and decided that we don’t need to change the existing GST treatment of these estates.

“Our preliminary view had been that moveable home estates were not sufficiently similar to caravan parks to be commercial residential premises.

“With the benefit of submissions, it is evident that while moveable home estates have changed, they are still similar enough to caravan parks to receive the concessional treatment. In particular, both involve letting of sites separately to the building, and provide communal facilities to residents.

“Our draft ruling process encourages the community and stakeholders to put forward their views on our interpretation of tax issues. We received many comments from industry groups, residents and tax professionals during the consultation process. We thank the community for their involvement.”