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Legislative Assembly for the ACT: 2000 Week 7 Hansard (27 June) . . Page.. 2077 ..
Proposed new clauses 4A and 4B.
MR HUMPHRIES (Treasurer, Attorney-General and Minister for Justice and Community Safety) (9.16): I move:
That the following new clauses be inserted in the Bill: Page 2, line 16:
"4A Power to determine fees, charges and other amounts
If an Act authorises or requires the determination of a fee, charge or other amount, the power includes power to determine an amount that is a tax merely because of it including an amount in relation to a GST liability of the Territory, or the person to whom the fee, charge or amount is payable, in relation to the fee, charge or amount.
4B Application of s 22 of Fair Trading Act 1992
In its application in relation to the period 1 July 2000 to 1 August 2000, section 22 of the Fair Trading Act 1992 has effect as if a price appended to goods that states the price of the goods without GST were taken not to be appended to the goods.".
The amendment inserts proposed new clauses 4A and 4B. Clause 4A is what we call the determination power. It is similar to a provision included in the Interpretation Amendment Bill and I have indicated already the part that the government wishes to proceed with tonight. The question might well be asked why we need a determination power when we have a prices power in the legislation. The answer is that the two provisions deal with slightly different situations.
Under the determination power the GST is included within the determined fee. It makes it possible for government to clearly set the fee to be paid by way of determination. Under the prices power, the GST can be added after a price is set under an act. It is clearly appropriate for this to happen when government does not have enough information to determine the amount that should be added to make provision for the GST. The provision cannot be used to charge GST twice. This provision also has a sunset clause of 30 June.
Clause 4B arose after discussions with the ACT and Region Chamber of Commerce. I note that industry initially raised it with the Taxation Office in relation to the practice of large retailers placing tickets on goods for sale containing both pre-GST and post-GST prices. There is a need, at least for a short period, to have dual pricing on items in the ACT and it will take some time for some organisations to be able to separately price items for the post-GST period. Dual pricing, I understand, is already being employed in some ACT retail situations and that is appropriate for a period of, at most, a month.
From 1 July to 1 August this year, it will be possible for stores and shops to display both a pre-GST and a post-GST price, but gradually businesses should have only the post-GST price. I think a month is enough time to be able to do that. This has been worked out in conjunction with the Australian Taxation Office and the Australian Competition and Consumer Commission.
Amendment agreed to.
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