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Legislative Assembly for the ACT: 2000 Week 5 Hansard (9 May) . . Page.. 1275 ..

MR HUMPHRIES (continuing):

The ACT government will continue to put the case that the GST needs to be an equitably applied taxation reform. There is more work to be done, particularly by the federal government, in making implementation decisions about the legislation. We will continue to be involved in a dialogue with the federal government about that. As I have said, the framework is a given. We do not propose to take up the cudgels for further structural change in that framework any more than any other Australian government proposes to do at this time.

I think that the impact on small business is very clear in terms of the overall effect on the Australian economy of having a clear and much-needed reform of the taxation system. There are, admittedly, significant problems in some small businesses in terms of adjusting to the GST, problems which organisations such as the chamber of commerce are addressing through a number of seminars, information evenings and so on; but the fact remains that, to my knowledge, Australian business, both large and small, has welcomed these reforms, has agreed that the reform of our taxation system is a long overdue and very necessary reform and has embraced the concept, even if individual businesses will face difficulties in implementation, particularly those that are not well prepared.

In that context, the government believes that it is very important for small business to take the time to understand how the new system will work. I spoke just today with the chief executive of the chamber of commerce about the program being undertaken by them to educate people. They are conducting 22 different seminars on the GST-some for the whole of the private sector and some for specific sectors, such as manufacturing and retail. That is a very important thing for them to be doing.

In terms of the tax generally I simply say that, although there will be pain in implementation, the tax is a vitally important reform for our nation and we believe that it needs to happen. I do recall that the Premier of New South Wales, Mr Carr, was one of the first state leaders to want to sign up to the tax. He accepted that it needed to happen and was one of the first to come forward and sign on the dotted line.

I am advised that the feds knocked back one of our fees, the burial and cremation fee. My note says that it is a dead issue, so I will not will not pursue that matter. Overall, the government's representations on the application of the GST to government fees and charges were accepted. If industry, small businesses in particular, takes the time to find out about the impact of the GST, it should not be an intolerable burden. There should be a satisfactory transition for businesses that are well prepared and the effect on Australia's economy generally should be a very positive one.

MR STANHOPE: I have a supplementary question, Mr Speaker. Given the concern of small business about the application to them of the GST, which the Treasurer just acknowledged but concedes he has done nothing about, is the Treasurer at all concerned about the disgraceful misuse by the federal government of $360 million of public money on a glossy campaign to promote its GST-based tax reform?

MR SPEAKER: The question is asking for an opinion.

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