Page 467 - Week 02 - Wednesday, 24 February 1993

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Members interjected.

Mr Stevenson: I take a point of order, Madam Speaker. This is a very important matter, particularly as there has not been much time to take any note of what the Bill is about. I would really appreciate being able to listen to Mr De Domenico without the noise.

MADAM SPEAKER: Mr Stevenson, I will, as usual, remind all members of the provisions of standing order 39.

MR DE DOMENICO: Thank you, Madam Speaker, for your continued protection. Mr Stevenson is correct, Madam Speaker; this is a very important Bill. It is a Bill that has not yet been looked at by the Australian Hotels Association. It is a Bill that has not been looked at by anybody who is being affected by it. It will affect tavern owners who employ a lot of young people. It is a fact, Mr Wood - through you, Madam Speaker - that youth unemployment is in total disarray and is a mess in the ACT. That makes it a very important Bill. It could affect jobs in that industry. I suggest that what Mr Stevenson said makes a lot of sense.

Currently there are two taxing regimes for licensees in the ACT. This is further complicated when there are two tax levels for high level and low level alcohol, as foreshadowed in the budget. Then again, it was not foreshadowed in the budget; we found out in a press release in June issued by the Chief Minister, which said:

Tax arrangements for liquor are to be changed to encourage the consumption of low alcohol beverages in line with recent changes announced in New South Wales. The existing 10 per cent flat tax rate will be replaced with a concessional rate of 7 per cent for low alcohol and 13 per cent for high alcohol products. This new scheme will be introduced with effect from 1 January 1993.

That went out in the form of a press release. We know that not all tavern owners get a chance to get a copy of Ms Follett's press releases. That statement was in June. On 27 November a letter went out from a Mr Chris Williams of the ACT Revenue Office to the licensees of various places around town, saying that in June the Chief Minister announced that from 1 January 1993 low alcohol products will be taxed at a rate of 7 per cent compared with 13 per cent for the alcoholic beverages. It went on to say that the changes had been deferred; that implementation was to be from 1 April 1993; and that more information about the changes and their impact would be promulgated in the new year. That is the last that these people heard about what was going to happen. That was on 27 November 1992.

The next step was that on Sunday afternoon some people were lucky enough to get a copy of this legislation from the Liberal Party. It was sent out on Sunday afternoon. The Australian Hotels Association, not a minor player in this sort of situation, did not even know anything about the legislation. They now have had a chance to have a look at it, or part of it, and they said, "Listen, some of it makes a heck of a lot of good sense, but we are concerned about certain aspects". They still have not had a chance to go through all the legislation properly; yet we are expected to debate it and to pass it within seven days. This legislation is having an effect on hundreds of small businesses in the ACT. There was no consultation whatsoever.


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