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Thread: Interchange Vacation Club Special levy

  1. #1

    Unhappy Interchange Vacation Club Special levy

    Hi all,
    Are there any Interchange Vacation Club member? I need some one help me about my club (Interchange Vacation Club) in Australia sent me an invoice about Extraordinary Special Levy to pay the last 4 years member's maintenance fee GST to Australia Taxation Office. Have any one of you got that invoice or heard about that? Please help me to clarify that is true to be pay to Australia Taxation Office. Their letter said under the February 2010 Australia Taxation Office new law all timeshare could face the same special levy to pay the GST payment from members yearly maintenance fee. Is this apply to your timeshare club as well?
    Could you please give me advices.

  2. #2
    Contributor - Bronze Sydney's Avatar
    Join Date
    Jun 2005
    Sydney, Australia
    We got the opposite letter from one of our Australian timeshares.
    We had always paid GST on our levies and our timeshare wrote to us for this financial year that the ATO had advised that GST was NOT payable on maintenance levies. However, they said it wasn't an official tax ruling but the ATO interpretation of the law. So consequently, we now do not pay GST on our levy. Our other Australian timeshare said they did not want to take the risk (I interpret this as them being too lazy to follow up on this as it's a hassle for them) so they will continue to charge the GST on our levies.
    So one of them will continue to charge the GST while the other one is no longer charge it and in fact said they were investigating whether they can get the GST refunded from the ATO for the previous years of payment.

    Goes to show it depends who's running your timeshare board as to who's proactive for owners benefit.

    Therefore, I suggest you call the ATO yourself and ask for clarification and inform your timeshare board the real status of the ATO's stance.

  3. #3


    Thanks Sydney,
    I had been told by the ATO officer refer to ATO ID 2010/23 which has Date of publication: 5 February 2010. The last paragraph is "The annual maintenance fee payable by a participant for levy periods commencing on or after 20 December 2000 is, therefore, not consideration for a taxable supply as it is consideration for an input taxed financial supply of an interest in a time-sharing scheme under subsection 40-5(1) of the GST Act."
    This means no GST for timeshare levy. You can check it out yourself at Australian Taxation Office Homepage. tick Legal database box then search for "timeshare gst" or ATO ID 2010/23.
    You can show your timeshare manager of this document too. This may save your GST from now on. I have to do that to my timeshare manager too and hopefully no special levy for all of our members.
    I wish all Interchange Vacation Club member can see that too but I don't know how to communicate to them.
    Thanks again.

  4. #4
    Contributor - Bronze Sydney's Avatar
    Join Date
    Jun 2005
    Sydney, Australia
    Thanks Dom. Good luck with Interchange.

  5. #5
    Hi Sydney,
    I just been told by ATO officer about the Interchange special levy. The real problem of this is not GST in maintenance levy but The club had claimed the GST rebate from the club maintenance expend. This mean the club got all the service GST money which normally should not be claimed from the maintenance service GST by other service provider. They have to pay back the ATO now. I hope your club did not do that way.


  6. #6


    I am an Interchange Vacation Club Member. Before I joined interchange I was with Holiday Concepts and changed when they were discussing changing to the points system. Holiday Concepts would charge a refurbishment levy every 5 to 7 years or so. Now Interchange is trying to charge me a refirbishment levy every year since 2008 and I cant remember how many before that date I paid. The levy should not happen every year unless they need the money for something else and use the title "refirbish" so members won't query it. Are you or any other members concerned about this policy.
    Regards concerned member.

  7. #7
    I too am a member of IVC and have become more and more disillusioned with the company; the costs involved in membership have become quite outrageous. When we purchased our points in 2006, one of the main selling points they used was "buying future holidays at todays prices". The increases in fees and levies now mean that it costs significantly more to stay at many of the properties they manage than it does as a non member. I have written to them to complain and have received completely unsatisfactory replies. Furthermore, many of their tactics are quite underhand - for example, they wait until you have paid your annual fees and then foist an unheralded special levy upon you, so that you are compelled to pay it or lose the money already paid. I have done some comparisons on costs of a weeks accommodation in 2007 and 2010, and for members and the public via sites such as Wotif, and will happily post them if people are interested.
    If I lived on the Gold Coast, I would be down at the Chevron Rennaissance where they approach the public to entice them with their scratchies, handing out a financial analysis of the true cost of membership to unsuspecting folk so they can make an informed decision and be aware of the magnitude of the apparent deception by this company.
    I feel that it is time for the membership to form some sort of lobby group to air our concerns. It is very difficult to find who the other members are, though.

  8. #8
    Hi Mark D. I would love to see the comparisons posted. I'm also an IVC member and am feeling a little ripped off of late.

  9. #9
    The following are my calculations of the cost, to members,of staying at selected IVC properties. I have used Gold and Sunshine Coast resorts as I consider that they are the most relevant to the majority of members.The cost is calculated by: Annual membership fee + user charge + $cost of points (the cost of points is $3.90/point with a life of 80 years = 4.875c/point/year during medium time)
    Surfers Royale 1br: 220 + 743 + 165 = $1128 (1 week/yr) or $1018 (2 weeks)
    '' '' 2br: 220 + 743 + 237 = $1200 $1090
    BeachHouse: 220 + 624 + 237 = $1081 $971
    Beachcomber: 220 + 681 + 237 = $1138 $1028
    Sandy Point 2br: 220 + 663 + 237 = $1120 $1010
    Golden Shores: 220 + 663 + 174 = $1054 $944
    Pacific View: 220 + 532 + 161 = $913 $803

    By means of a comparison, a member of the public who has made no financial commitment to the club can stay at the resorts for:
    Surfers Royale 1br: $136/night (2 nights minimum) or $952/week
    " " 2br: $160/night (2n/m) or $1120/week. I have seen rates as low as $754/week in winter.
    BeachHouse and Beachcomber: $152/night or $1064/week, with a 2 night minimum stay. In November and early December a non-member can stay for $116p/n for 5 nights or $112p/n for a week - $784!!!
    Sandy Point 2br: $148pn - $1036pw with a current special of $784.
    Golden Shores: $148pn - $1036pw.
    All of the above rates are via Wotif.
    Pacific View, via their own website, as little as $650 in the off season.

    I have decided not to include the 'special levies' in my calculations to offset these against any bonus points earned for early membership fee payment. However, we are going to have to earn lots of bonus points to make up for this years' levy!

    To further aggravate the situation, the cost of staying at most of the properties that IVC lease has absolutely skyrocketed. In August 2007 we stayed at the Chevron Renaissance for the total cost ($195 + 401 + 264) of $860. In Aug '10 it would have cost us $1322 for the same week. Friends of ours stayed at Q1 for $860 in Aug '07 - last month it would have cost them $1283.

    Future holidays at today's prices. Yeah, right!

    We've been had.

  10. #10
    I apologise if the above post is a little confusing, but I was not able to tabulate the costs properly due to the format of the postings. The last figures in the resorts list are for one or two weeks. In reality, the only real savings when you use multiple weeks each year is to reduce the cost of your annual membership fee on a per week basis.

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