Page 2177 - Week 10 - Thursday, 26 October 1989

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merits. The reason for that, I think, is quite clear - such arrangements are obvious avenues for tax avoidance.

The more specific a Bill gets as to those sorts of matters, the more open it is to evasion and avoidance, and the more loopholes appear. The New South Wales Act also excludes certain contractual arrangements which, depending upon the circumstances, may or may not be service contracts. These are not excluded under the Bill and, again, they will be treated on their merits. The commissioner advises me that, for example, genuine contractual arrangements for door-to-door sales will not be caught as a service contract.

However, Mr Speaker, as a result of today's discussions, it has been decided that owner-drivers will be excluded from the service contract provisions in proposed section 3B, and I have an amendment circulating on that matter. So, Mr Speaker, in closing I would just like to emphasise that the action is aimed at protecting the ACT's revenue base and providing for us a capacity to maintain high-quality government services. Payroll tax is a very important part of our budget, and in all the discussion and all the opposition we have not heard of an alternative source for that $65m, nor have we heard a case put forward for why some people should be able to avoid this tax while the majority of good and proper businesses do not. So, Mr Speaker, I commend the amendment to the Assembly.

Question put:

That this Bill be agreed to in principle.

The Assembly voted -

AYES, 12  NOES, 5

Mr Berry Mr Humphries
Mr Collaery Mr Kaine
Mr Duby Mrs Nolan
Ms Follett Mr Stefaniak
Mrs Grassby Mr Stevenson
Mr Jensen
Dr Kinloch
Ms Maher
Mr Moore
Mr Prowse
Mr Whalan
Mr Wood

Question so resolved in the affirmative.

Bill agreed to in principle.

Detail Stage

Clauses 1 to 4, by leave, taken together.

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