Berrigan's Amaroo Hostel company in administration after tax woe

Control of Berrigan and District Aged Care Association Limited, the company which administers the 30-bed centre, is now in the hands of insolvency specialist firm SV Partners.

One of its Melbourne directors Peter Gountzos was appointed as administrator last Friday.

The first meeting of creditors of the company is due to be held this Friday at SV's office in central Melbourne.

Mr Gountzos has not replied to The Border Mail's calls and email and acting deputy chairman of the aged care association's board Chris Nevins also did not respond.

Farrer MP Sussan Ley said she had been aware of difficulties dating back four years and it appeared the move into administration had been prompted by concerns from the Australian Tax Office.

"Our office has been providing regular advice and assistance to Berrigan Aged Care from 2019 when financial concerns were first raised," Ms Ley said.

"Since June last year, that business position seems to have deteriorated quickly, following which we alerted the Aged Care Minister and her department.

"The ATO is now apparently seeking to call in a backlog of missed PAYG and GST payments.

"We approached the tax office last week asking if they could urgently consider an option for Berrigan (or any future operator) to enter into a revised debt agreement over the medium to long term.

"Increasing input and staff costs and a growing number of operating complexities is making community-run aged care (and childcare) a really difficult task in 2023.

"Regardless, it would be enormously disappointing if an inability to reach an agreement with the tax office has led to Amaroo's possible closure."

Amaroo is believed to have 60 staff and also provides home and community help.

The hostel opened in 1994 after three years of community fundraising which began with a chook raffle.

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