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Wednesday, 1 November 2000
Page: 21946


Mr Hatton asked the Treasurer, upon notice, on 14 August 2000:

(1) Is the Minister's Department and agencies within the Minister's portfolio compliant in respect of the Goods and Services Tax.

(2) What action did the Minister's Department and agencies within the Minister's portfolio take to ensure that they were GST ready by 1 July 2000.

(3) Is the Minister able to guarantee that no agency within the Minister's portfolio will suffer negative impacts on its budget or services due to the GST; if not, or if the guarantee was subsequently proved incorrect, would the Minister be prepared to resign.


Mr Costello (Treasurer) —The answer to the honourable member's question is as follows:

(1) In June 2000, the Chief Executives of all agencies within my portfolio were asked to provide me with written confirmation that they would be able to comply with The New Tax System from 1 July 2000. I received such assurances from each agency.

(2) Through a timely process of internal reviews of existing processes, inter-agency consultation, liaison with the Australian Taxation Office, and consultation with the GST Implementation Unit of the Department of Finance and Administration, Treasury, and portfolio agencies identified areas of their systems requiring modification to ensure GST compliance, implemented these modifications, and provided staff with relevant training.

(3) The implementation and ongoing management of tax reform by agencies is the responsibility of their respective chief executive officers or boards of management (as applicable). While the Government will continue to monitor the impact of the implementation of The New Tax System, the reforms are not expected to reduce the level of funding of agencies in this portfolio in real terms.