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Legislative Assembly for the ACT: 2000 Week 5 Hansard (10 May) . . Page.. 1367 ..

things-reductions in income tax, tax cuts, concomitant with the GST-

Mr Quinlan: Net of the GST?

MR HUMPHRIES: No, and the abolition of the Timor levy or the non-putting on of the Timor levy which was due to happen from the middle of this year. Mr Speaker, the fact is that that represents a significant injection of funds, but not into particular government programs where the spending of money would have some direct benefit on Canberra businesses and, in turn, a trickle-down effect on the community. This is a direct injection of funds into the pockets of ACT taxpayers.

Obviously, with any such benefits there are pluses and minuses, there are things that come in and there are things that go out, but the benefit is significant. It is a rough estimate given to me by my department and it is refining figures on that. The figure may well be higher when those further revisions are made, Mr Speaker.

Mr Speaker, the ready figures Mr Quinlan seeks on the GST and the flow through of revenue to the ACT from the GST I have outlined before in this place. I have indicated that the ACT is guaranteed a minimum level of payment from the Commonwealth for a number of years so as to ensure that the ACT attains no loss as a result of the implementation of the GST. When the income from the GST becomes positive, then the ACT retains the benefit of that additional income. As I have indicated already in this place, the ACT begins to get more than the guaranteed minimum amount from year 4 of the GST, which is 2004-05 or 2003-04, I forget which, and-

Mr Quinlan: I take a point of order, Mr Speaker. Can I clarify the situation because Mr Humphries might have misinterpreted the question? Mr Humphries' press release was about taxpayers being better off.

MR HUMPHRIES: Obviously, you cannot indicate how much individual taxpayers would be better off because it depends on how much they spend. If they do not spend on goods and services, they do not pay the GST. It depends on what services you buy. If you go out and buy a new car, a refrigerator, other whitegoods and so on, obviously you get more benefit because sales tax has come off and GST is lower than if you buy things for which sales tax did not previously apply but now a GST does apply.

Mr Speaker, the estimate from my department is that the ACT taxpayers will be around $150 million a year better off from the coming financial year onwards as a result of the implementation of tax cuts and the GST and the cancellation of the Timor levy. I will make one comment on interest rates hikes, that is, that the ACT taxpayers pay about the same amount per week as the average Australian in mortgage repayments on their homes; but the average ACT citizen has a higher disposable income than the average

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