Launceston charity calls on state government for stamp duty reimbursement

Faith-based organisation Teen Challenge Tasmania paid a stamp duty of $29,833 to transfer the former Meander Primary School from the Tasmanian Government to Meander Valley Council (MVC).

Teen Challenge ended its lease on the property in January 2021.

Since then, Teen Challenge and MVC have requested the government to reimburse the stamp duty but said they have received little communication on the matter.

Teen Challenge is a not-for-profit organisation that provides support for people struggling with addiction.

The charity doesn't receive government funding and recently set up a GoFundMe page calling for much-needed donations to keep their doors open.

In 2016, Teen Challenge wanted to lease the property to open a rehabilitation centre for women and children.

The agreement was made to transfer the property from the state to MVC - with the caveat that Teen Challenge could lease the property if they covered the transfer cost.

A letter from MVC then-general manager John Jordan to Premier Jeremy Rockliff dated April 21, 2022, said "all duties paid by council to the state ... were effectively at the expense of Teen Challenge".

The letter says that after the lease commencement, the council approved the charity's development application for the proposed use as a rehabilitation centre, but the decision was disputed.

In early 2021, Teen Challenge decided to hand back the property to the MVC.

"It was not safe to bring women into that environment ... we couldn't use it for anything," Mrs Cavanagh said.

The aforementioned council letter said the charity was "unable to meaningfully use or achieve quiet enjoyment of the property during its lease term ... as a consequence of the litigation and community unrest".

Mrs Cavanagh said her main concerns were recognition of the circumstances and the reimbursement, and more communication between the state and local government.

Mrs Cavanagh said Teen Challenge and the MVC have lobbied and attempted to contact the state government since 2022, to little avail.

"[There's] two government parties - state and local - one is trying to communicate and the other is not communicating back," she said.

Mrs Cavanagh said Teen Challenge shouldn't have been asked to pay the stamp duty cost in the first place.

"In all seriousness, who asks a charity to pay for stamp duty of a property that's [not] ... coming into the charity's name?" she said.

"We don't own it [and] that shouldn't have been forced on us."

Since Teen Challenge ended the lease, the Meander Primary School was utilised by the education department for a pilot education program and in late 2022, was approved by council to become a new neighbourhood house.

Though Mrs Cavanagh applauded these programs, she said they have largely been government funded and held in a property that her charity paid for.

Minister for Finance Nic Street said while it would be inappropriate to comment on individual taxation matters, he is aware this issue has been alive for quite some time.

"My office has spoken with the Meander Valley Council and we are exploring ways for council to be able to support Teen Challenge with their request," Mr Street said.

"This has been an ongoing issue, and as the new Minister for Finance I am eager to find a speedy resolution."