Page 3755 - Week 12 - Thursday, 21 October 1993
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Investigations have suggested, however, that consumers in this situation rarely reconcile the actual use and do not advise the distributor so that an adjustment may be made to the licence fee. Madam Speaker, this is of particular concern to the Government. It is the subject of further investigation, and undoubtedly will be the subject of further action.
Concerns were also expressed in regard to what effect the proposed changes might have on the buying patterns of exempt certificate holders on both sides of the border. Madam Speaker, exemption certificate holders in the ACT are currently able to purchase diesel fuel from a New South Wales distributor without having to pay licence fees, provided of course that the fuel is to be consumed in the Territory; and this is also the case for New South Wales permit holders who purchase from ACT distributors. Madam Speaker, the proposed amendments to the exemption scheme do not change that situation at all. Diesel fuel distributors should not be concerned that either ACT or New South Wales customers with appropriate exemption certificates will change their buying patterns.
Mr Humphries in his couple of addresses, in particular in his address on Tuesday, said that he had contacted the New South Wales Treasury and the New South Wales Revenue Office, and from the information he had been given he suggested that people could walk across the border to New South Wales, produce some form of evidence to gain a New South Wales permit and then simply purchase exempt diesel fuel on demand for use in the ACT. Madam Speaker, the Commissioner for ACT Revenue and the New South Wales Commissioner of State Taxes have a completely different view of this matter to Mr Humphries. In fact, I have in my possession a letter signed by the New South Wales commissioner which advises that the commissioners have an agreement which will deal with any abuse of New South Wales exemption permits. You have to bear in mind, Madam Speaker, that it is not in the interests of New South Wales revenue efforts to be extending to ACT people a concession to which they are not entitled. It is very much in their interests to assist in putting an end to those kinds of avoidance schemes. Put simply, Madam Speaker, and for the benefit of the Opposition, the New South Wales commissioner has stated that any person who purchases fuel in New South Wales and who uses that exempt fuel in the ACT will have their exemption certificate withdrawn.
Mr Humphries: How will they know?
MS FOLLETT: Madam Speaker, it is a very old and well-worn path that, if you do not get the answer you want from one person, as Mr Humphries did not, then you keep on trying until you do find a person who will tell you what you want to hear. I do not want to dwell on that issue of abuse, Madam Speaker. I believe that Mr Humphries, as I have said, has significantly underestimated the Revenue Office's attention to compliance, but I would like to point out that what Mr Humphries has suggested is a recipe for a fair bit of trouble for people who seek to follow that scenario.
Madam Speaker, I would like to address briefly what I might refer to as the Corkhill scenario. There are no advantages in businesses relocating to Queanbeyan if their intention is to continue to trade in the ACT. I would find it very difficult to see how an organisation such as Corkhills could restrict their trading to Queanbeyan. If a person buys fuel in New South Wales for consumption within the ACT, that fuel attracts ACT licence fees, and it is the responsibility of the wholesaler to determine this factor and pay the
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