Page 3754 - Week 12 - Thursday, 21 October 1993
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The exemption provided to certain diesel fuel users, in its current form, is not means tested, nor is it targeted to any particular disadvantaged group; so I disagree completely with Mr Humphries, Madam Speaker, on his analysis of the social justice merit of this proposal. In my view, the current scheme is inequitable and does not serve social justice, because it is a significant concession that is utilised primarily by a limited number of ACT businesses and householders and commensurate benefits are not available to users of other types of fuel for similar purposes. Madam Speaker, the Bill proposes to make diesel fuel used for home heating and other off-road purposes subject to franchise fees, except for holders of the health care card or the pensioner health benefits card. I think reasonable people would agree that holders of those cards are probably the most in need in our community. I accept that they may not be the only poor people in our community, but I think that if you look at it in relative terms you will readily see that they are the most in need. This move will ensure that only those who are in need will benefit from the diesel fuel concession.
Madam Speaker, it has been suggested that the changes proposed by this Bill will lead to a loss of business for ACT diesel fuel distributors. This is simply not so. Fuel supplied by New South Wales suppliers to ACT users will still be liable for ACT tax, and exempt fuel sold in New South Wales cannot be used in the ACT. Madam Speaker, there should therefore be no loss of legitimate ACT business to New South Wales distributors, and both the ACT and the New South Wales revenue authorities will be on the lookout for any attempts to evade ACT tax liability. Madam Speaker, I think Mr Humphries has significantly underestimated the ACT Revenue Office's efforts in the compliance field. I would certainly not underestimate them in that way. I would like to - - -
Mrs Carnell: The Gestapo.
MS FOLLETT: Madam Speaker, Mrs Carnell just commented that that was the Gestapo. I think that should be withdrawn.
MADAM SPEAKER: Mrs Carnell, I believe that you should withdraw that.
Mrs Carnell: I withdraw.
MADAM SPEAKER: Thank you, Mrs Carnell.
MS FOLLETT: Thank you, Madam Speaker. I have been asked also what evidence there is to support the claim of abuse of the current scheme. Whilst I cannot disclose specific details, investigations of all licensed distributors carried out by the ACT Revenue Office earlier this year revealed that most distributors had supplied exempt fuel without properly checking the customer's exemption certificate. They have been cracking down on that. Common breaches of the scheme included not sighting a certificate, accepting expired certificates and accepting certificates issued in other jurisdictions. This compliance exercise, Madam Speaker, has resulted in assessments of $110,000 to date, and a quantity of fuel in excess of 1.6 million litres. Madam Speaker, most large consumers do own their own storage tanks, and at the time of purchase they advise the distributor of the amount of diesel expected to be used for both on-road and off-road consumption.
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