Auctioneers have been warned to make it clear whether their hammer prices include GST after the consumer watchdog received complaints from buyers in Melbourne. Buyers had complained to the Australian Competition and Consumer Commission (ACCC) about the advertising and auctions of three blocks of land by Manningham Real Estate Pty Ltd, trading as Barry Plant Doherty. The ACCC said in one case an auctioneer had said he did not believe GST was applicable when in fact there was GST liability on the hammer price. The watchdog said the land, in the Melbourne eastern suburb of Doncaster, was promoted in newspapers without showing whether the prices were inclusive or exclusive of the GST. There was also no clear disclosure to potential bidders prior to the auctions of whether GST applied to the land sales or not. The ACCC said the real estate agent acknowledged its actions may have raised implications under the Trade Practices Act and had given the watchdog court enforceable undertakings. The auctioneer and its client, the Manningham City Council, have agreed to fully refund the $48,350 of GST paid by the buyers. The ACCC said it did not believe the council had been involved in any breaches of the Trade Practices Act. ACCC chairman Graeme Samuel said auctions could be legally conducted on either a GST inclusive or exclusive basis. "However, it is crucial that when conducting an auction, auctioneers make it crystal clear at the commencement of the auction that price bids are being taken on either a GST-inclusive or GST-exclusive (basis) so that consumers can make informed decisions," he said. "Auctioneers which fail to make this clear may be required to make good the consumers' loss." From domain.com.au