Summit Homes has refunded $258,000 in GST payments to 111 homeowners following investigations by the Australian Consumer and Competition Commission.
The ACCC received a number of complaints from customers of Summit Homes, who entered fixed-priced building contracts between mid 1999 and early 2000. The complainants alleged that Summit charged an amount of GST above the allowance which was built into the original contract price.
The ACCC was concerned that the conduct may have breached the misleading and deceptive conduct provisions under sections 52 and 53(e) of the Trade Practices Act 1974. The ACCC raised its concerns with Summit Homes. Subsequently, the company changed both ownership and management. Following this, Summit Homes conducted an internal audit, wrote to the affected customers, and refunded a total of $258,000.
In resolving this matter with the ACCC, Summit Homes has provided a court enforceable undertaking to complete the introduction of its trade practices compliance program and to report to the ACCC on that program in the future.
The ACCC welcomes these voluntary refunds to Summit Homes’ customers and the implementation of the compliance program.
The ACCC acknowledges that the relevant conduct is not attributed to the current owners and that the new owners and management have cooperated fully with the ACCC to resolve this matter.
In explaining the ACCC’s continuing GST role, ACCC Chairman, Professor Allan Fels said, “A major focus of the ACCC’s GST enforcement role has been to ensure that all businesses, including new home construction companies, charge the correct amounts of GST.
"Consumers should know the price they are paying for goods or services before taking any steps towards making their purchasing decisions, especially for the largest decision most consumers will ever make – the purchase of a new home”.
“The GST enforcement objectives will continue to be a priority for the ACCC until the expiration of the GST transition period on 30 June 2002”, Professor Fels added.