Page 181 - Week 01 - Wednesday, 17 February 1993
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I would also like to comment upon the effect of payroll tax on small business in the ACT. I am sure all members are aware that small business is by far the greater proportion of business in the ACT. Small business does not, in the main, pay payroll tax. Payroll tax, as I have said many times, is paid by some 11 per cent of employers in the ACT. The effect of this is that our small businesses enjoy a relative advantage in competing with bigger businesses because they do not have to pay payroll tax. With the abolition of payroll tax and the introduction of a goods and services tax, our small businesses will lose the slight advantage they currently have. They will have to compete on an equal footing with bigger businesses for things such as contracts and services. So it is again, I think, probably an unintended consequence of Dr Hewson's action but one which is quite marked in the ACT. Nevertheless, I do appreciate the Opposition's support for the Bill before us. I recognise that Mr De Domenico will be moving an amendment and I will respond to his amendment in the debate at that time.
Question resolved in the affirmative.
Bill agreed to in principle.
Detail Stage
Clauses 1 to 5, by leave, taken together, and agreed to.
Clause 6
MR DE DOMENICO (4.13): I move:
Page 2, paragraph 6(1)(b), proposed new subsection 9(3), line 33, omit proposed new subsection 9(3), substitute the following subsection:
"(3) Section 6 does not apply to wages paid or payable by an employment agent to a person under a contract between the agent and that person in relation to the performance of work by that person for a client of the employment agent, where the employment agent -
(a) procures the services of that person in relation to the performance of work, being services that are ancillary to the supply of goods under the contract by that person to the client;
(b) procures the services of that person in relation to the performance of work, where -
(i) those services are of a kind not ordinarily required by the employment agent and are rendered by a person who ordinarily renders services of that kind to the public generally;
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