Senator PATTERSON (1:53 PM) —I thank honourable senators for their contributions to the debate on the Sales Tax Legislation Amendment Bill (No. 1) 1998 . The bill contains four proposed changes to the sales tax law, of which two are anti-avoidance measures, one will encourage the development of the commercial space launch industry in Australia and, as Senator Murray pointed out, the other measure will ensure that sales tax does not apply to certain goods brought into Australia by non-Australian family members of participants and by delegations of participants in the Olympic and Paralympic Games and associated events.

With respect to the issue that Senator Murray mentioned regarding a matter raised in the Senate Standing Committee for the Scrutiny of Bills, in order to facilitate the passage of the bill I will table the letter that was sent to Senator Cooney as Chairman of the Senate Standing Committee for the Scrutiny of Bills from Senator Kemp so that it is available on the public record. But, as a short answer: it is considered that the proposed export provisions will be a powerful disincentive to evasion, even without a fixed starting date. These amendments will act as a deterrent to discourage this type of behaviour from developing, while allowing for a quick response in the event of an emerging problem with tax evasion of this nature.

Commencement of these provisions would lead to potentially significant compliance costs for some exporters. On the other hand, if the provisions do operate effectively as a deterrent to evasion, it may be possible to indefinitely defer the start date and these compliance costs. This is in line with the industry's wish to have laws which target evasion but have a limited impact on complying taxpayers and the industry generally. Industry has noted that such strong statements from government are effective in combating evasion.

The avoidance of compliance costs in this case is especially desirable, given the current intention to end sales tax on 1 July 2000. Any fixed starting date for the legislation would be shortly before 1 July 2000. It would not be cost effective for either the industry or the tax office to incur these compliance costs unless there was proof of significant emerging abuse of the export exemption.

A similar open-ended commencement date exists with respect to the retailer withholding regime, which is another anti-evasion measure aimed at the computer industry. I table the letter to Senator Cooney from Senator Rod Kemp, and I commend the bill to the chamber.

Question resolved in the affirmative.

Bill read a second time, and passed through its remaining stages without amendment or debate.

Sitting suspended from 1.57 p.m. to 2.00 p.m.