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Legislative Assembly for the ACT: 2000 Week 5 Hansard (9 May) . . Page.. 1274 ..

MR STANHOPE: My question is to the Treasurer, who would be aware of the high level of concern in the small business community about the introduction of the GST, concerns that go to matters such as the lack of quality information, compliance costs and the effect of the tax on cash flows. Can the Treasurer say what analysis he has made of the effect of the GST on businesses in the territory? Will he release the results of any such analysis? What representations on these matters has the Treasurer made to the federal Liberal government on behalf of small business in the ACT, or has he simply sacrificed the small businesses of the ACT to his commitment to the Howard government?

MR HUMPHRIES: Mr Speaker, it is terribly heart-warming to see the Labor opposition concerned about the plight of small business. I had not detected any great concern or empathy for their position until today. The change of heart is most welcome. Mr Speaker, the ACT government, like all other Australian governments, is a signatory to the intergovernmental agreement on tax reform, which provides for the implementation of a new tax system, as agreed at the meeting of premiers, chief ministers, treasurers and the Prime Minister at least a year ago and attended by the then Treasurer, the Chief Minister, where the details of the goods and services tax were handed out. Subsequently, of course, the agreed package was put to the Australian parliament, including the Australian Senate, and a number of changes were made to the terms of the legislation.

Mr Speaker, that framework is a given which has been accepted not just by the ACT government but also by the other Australian governments, notwithstanding some debate and argument about the terms of that framework before it was put in place, namely, before it went through the Senate. However, there are other details which have been very much matters of debate and discussion in the meantime. One of those matters has been the application of the goods and services tax to state and territory fees and charges. The ACT has made representations about which fees and charges should be exempt. I am pleased to say that the recommendations or submissions of the ACT government have been accepted in full. There have also been issues for us to consider about the impact of the GST on particular organisations, particularly non-government organisations.

Ms Carnell: Which we have already announced.

MR HUMPHRIES: The Chief Minister announced yesterday that there was to be a general forgiving of imbedded wholesale sales tax savings made by those non-government organisations. The input credits will be fully repayable to the community organisations where they are registered for GST and the savings that they make from the imbedded wholesale sales tax being removed will be retained by those organisations; it will not be clawed back by the government. Some small businesses in that category are certainly going to benefit from that arrangement, Mr Speaker.

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