Mr SWAN —My question without notice is again directed to the Prime Minister. Will he confirm that GST credits on charitable fundraising activities are available only for GST inputs and not for the GST applicable to the final sale price of the fundraising activity? For example, in the case of a lamington drive, a charity would be able to claim only the 10c GST they paid on the purchase price of $1 for each packet and not the 30c GST applied to the sale price of $3 a packet? Is it a fact that the GST amounts to a direct tax on the net profit of charitable fundraising activities—yes or no?

Mr HOWARD (Prime Minister) —We already have a tax on the fundraising activities of charities. It has been made very clear by the Treasurer and by the government that, in relation to certain activities by charities, there is a turnover limit below which there is no requirement at all to register in relation to the GST. There are very generous exemptions as far as donated goods are concerned, there are very generous exemptions in relation to the sale of second-hand goods, and the whole scheme of the GST is designed to underpin and support the activities of charities within Australia. The fundamental principle is that, unless you go over $100,000 in relation to a charitable activity, there is no requirement at all to register for the GST. I have contributed to a number of lamington drives; I have been involved in organisations that have run them—and I would love to think that most of them had made $100,000 a year. The reality is that they have not. So, if you want an example, try something other than lamingtons.