Page 3563 - Week 12 - Tuesday, 19 October 1993

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Mr Moore asked: Will not the removal of this exemption result in businesses moving across the border? I really do not believe that this is the case. There is, Madam Speaker, fuel that is sourced and supplied by New South Wales suppliers, obviously; but where that is supplied for ACT use it will be subject to the full price and it will be liable for ACT tax. Fuel that is supplied in New South Wales to ACT users is not entitled to exemption. I put it to members that it is in the interests of both New South Wales and the ACT to ensure that there is not avoidance of the tax by that means. Clearly, the New South Wales Government would have no interest in extending an exemption to ACT users of that fuel, and, quite clearly, the ACT Government also has an interest in ensuring that we collect our own revenue. Both the ACT and the New South Wales revenue offices will be on the lookout for purchases of exempt diesel fuel from New South Wales distributors for use in the ACT - both revenue offices, not just ours. Members might be interested to know also that penalties of up to 200 per cent of the avoided licence fees can be applied if there is this kind of avoidance. Offenders can be prosecuted. Our own revenue inspectors will be liaising very closely with the New South Wales Revenue Office to deal with attempts to avoid these licence fees.

As for the last part of Mr Moore's question, Madam Speaker, there should be no loss of legitimate ACT business to New South Wales distributors. In the event that ACT distributors do see a loss of particular customers inexplicably and suspect that they might be going to New South Wales distributors, I would encourage them, and the Revenue Office would certainly encourage them, to contact the Revenue Office, as the former customer may well be trying to beat the system and avoid paying a tax for which they are liable in this Territory.

MR MOORE: I have a supplementary question, Madam Speaker. Chief Minister, you mentioned the gas levy. Can you indicate what percentage of home heating, for example, is covered in terms of the gas levy? Would you not see section 92 of the Australian Constitution playing a role in terms of free trade between the ACT and New South Wales as far as that fuel supply goes?

MS FOLLETT: Madam Speaker, I will take the so-called supplementary question on notice.

MADAM SPEAKER: As for the legal opinion, Ms Follett, you are not required to answer.

Education Institution Councils

MR HUMPHRIES: My question is to the Minister for Education. Can the Minister confirm that the councils of the Australian National University, the University of Canberra and the Canberra Institute of the Arts have been without ACT Government nominees for more than two-and-a-half years or so? Can the Minister explain to the Assembly what impact those vacant seats on those bodies are having on the operation of those institutions? What is the source of the Government's paralysis on this question?


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