Mr McMULLAN —My question is to the Treasurer. Is the Treasurer aware that certain car lease companies have written to their clients notifying them of significant increases in the cost of leasing a car due to `the transition from the current taxation system to the GST-based system.' In particular, what is the Treasurer's response to Clarence Valley Community Programs, a not-for-profit agency in Grafton, who have just been told by Hertz that an 18-month car lease will cost them $400 instead of $260 because of the GST? What compensation is available to this organisation and thousands of others like it for increased costs from now—November 1998—to July 2000 as a result of this increase in their costs? Or does the Treasurer intend to take any action to stop the car leasing companies from using the GST to increase costs to charitable services, particularly those who rely on cars to service rural and regional communities?

Mr COSTELLO (Treasurer) —This question has previously been asked and the answer has previously been given, but I will give it again. Once you get rid of Labor's wholesale sales tax and you replace it with—

Mr McMullan —This is happening now! Today!

Mr SPEAKER —The member for Fraser, the Treasurer has the call.

Mr McMullan —The costs are going up now.

Mr SPEAKER —The member for Fraser!

Mr COSTELLO —Just hold on; just calm yourself down. Once you get rid of Labor's wholesale sales tax—which is 22 per cent on cars, as you know—and you reduce taxes to 10 per cent, you actually make cars cheaper. It is a great thing for the car industry, it is a great thing for not-for-profit organisations and it is a great thing for everybody that buys a car. We on this side of the parliament like cheaper cars.

Some of the lease companies say, `If the remainder value of a car is less, then we will put up our lease payments.' That is what they say. Some say it rightly; some say it wrongly. Some are taking the opportunity to put up costs in advance because the car has become cheaper. But, for the not-for-profit organisation, let me explain this point again: costs fall.

Mr McMullan —No, they are going up.

Mr COSTELLO —For charities, costs fall.

Mr McMullan —Up to $400 from $260?

Mr SPEAKER —The member for Fraser!

Mr COSTELLO —Charities are GST free. That means that charities get back all of the embedded costs.

Mr McMullan —On a point of order, Mr Speaker, on relevance: my question was about—

Mr SPEAKER —The member for Fraser will resume his seat. There is nothing irrelevant about the Treasurer's answer.

Mr McMullan —Would you actually like to hear my point of order before you rule on it?

Government members —Oh!

Mr SPEAKER —I want no help from those on my right. The member for Fraser indicated to me that he had a point of order on the basis of relevance.

Mr McMullan —Exactly—would you like to hear what it is?

Mr SPEAKER —I was simply indicating that the Treasurer's answer had been relevant to the question.

Mr McMullan —My question related to what is going to happen over the next 18 months. Everything he has referred to relates to what happens after the next 18 months and cannot be relevant.

Mr SPEAKER —The member for Fraser will resume his seat.

Mr McMullan —It cannot be relevant.

Mr SPEAKER —The member for Fraser will resume his seat. The Treasurer's answer is in order.

Mr McMullan —You are hopeless!

Mr COSTELLO —Oh!

Mr SPEAKER —The Treasurer will resume his seat. Was the member for Fraser reflecting on the chair with that statement?

Mr McMullan —I was very angrily responding, and I withdraw.

Mr SPEAKER —Thank you. I call the Treasurer.

Mr COSTELLO —I agree with the member for Fraser. Can I say in relation to charities, as I think has been well explained to anybody who has an open mind on the question, that prices for charities fall under the government's new tax system. Isn't that a great thing? The fact is that charities can get back all of the taxes that are currently embedded—

Mr Beazley —Mr Speaker, a point of order: look at the question that was asked by the member for Fraser. It may be that you do not recollect what was in it. This goes to relevance. The point is that he asked specifically of the Treasurer:

. . . what is the Treasurer's response to Clarence Valley Community Programs, a not-for-profit agency in Grafton, who have just been told by Hertz that an 18-month car lease will cost them $400 instead of $260 because of the GST?

What does the Treasurer intend to do:

to stop the car leasing companies from using the GST—

Mr SPEAKER —I interrupt the Leader of the Opposition. The Leader of the Opposition does not intend to read the entire question, I trust.

Mr Beazley —Not the entire lot. It continues:

. . . to increase costs to charitable services, particularly those who rely—

desperately—

on cars to service rural and regional communities?

It is very specific to the one point related to leases and the fact that prices of those leases are rising in advance of a GST coming into place. There is nothing else in the question than that.

Mr SPEAKER —I in fact deem the Treasurer to be entirely relevant to the question, and I invite him to continue his response.

Mr COSTELLO —I have dealt with the question of cars. You asked me about charitable services, and the point I am making is this: under the next tax system charities get a better tax deal. They get back all of the embedded wholesale sales taxes that they now pay under Labor, and they do not put any tax on their outputs. Running a charity becomes cheaper. That's great for the charitable sector, it's great for people who get their services, and we do not understand why a Labor Party would not support that.