Federal Member for New England Barnaby Joyce has welcomed the decision by the Australian Taxation Office to drop proposed changes that would have seen GST applied to moveable homes.

The ATO has advised it has withdrawn its draft ruling which sought to apply the full GST to many caravan park residents who live in mobile homes across the New England electorate.

“This is great news for the hundreds of New England residents who would have been adversely slugged if the ATO’s draft ruling been allowed to stand,” Mr Joyce said.

“I had serious concerns about the cost of living impact this would have had on people living in our local moveable estates.  One of the main reasons people choose to reside long term in moveable home estates is because of the low cost of housing.

“I have always believed that moveable homes should be considered as commercial residential premises and subject to the same GST rules as other long term accommodation.”

Mr Joyce said the ATO has clearly listened to our concerns.

“In their statement, the ATO acknowledges the arguments which were included in many of the submissions.  Certainly the feedback I received from local residents enabled us to present the strongest possible case against the draft ruling,” he said.

"This will relieve affected residents of the stress that the draft ruling created."