Senator O'Brien asked the Minister representing the Treasurer, upon notice, on 2 March 1999:

(1) Will all racing, trotting and greyhound coursing clubs be required to pay the Government's proposed Goods and Services Tax (GST) on all their activities.

(2) If some clubs or some activities are to be exempt from the GST what will be the basis for those exemptions.

(3) Will those clubs that are required to pay the proposed GST also be required to account for all supplies of goods and services used or consumed as part of their activities in staging horse or dog races.

(4) Will each club then be required to file a GST return in respect of each taxation return period.

(5) Will each club also be required to pay GST to the Australian Tax Office within the prescribed taxation return time.

(6) Will all nomination and entry fees paid to horse and greyhound owners to racing clubs attract the proposed GST.

Senator Kemp (Assistant Treasurer) —The Treasurer has provided the following answer to the honourable senator's question:

(1) Racing, trotting and greyhound coursing clubs that are registered for GST purposes will be required to charge GST on their activities and will be able to claim input tax credits for the GST paid on purchases of business inputs. Businesses carrying on an enterprise with a turnover of $50 000 or more will be required to register for GST purposes, while those with a turnover less than $50 000 will have the option to register.

(2) GST free treatment exists for certain activities such as health and education services. Chapter 3 of the A New Tax System (Goods and Services Tax) Bill 1998 outlines the activities that qualify for GST-free treatment.

(3) Registered clubs will need to keep records of the value of gross sales of goods and fees charged for services (such as entry fees, ground admission fees, etc.) and gross purchases and tax on purchases. If the gross GST payable in any period exceeds total input tax credits, then the difference will be paid to the Australian Taxation Office. If total input tax credits exceed gross GST in any period, a refund can be claimed.

(4) Clubs registered for GST purposes have a formal requirement to lodge GST returns. In practice, a GST return will be part of the Single Business Activity Statement.

(5) Clubs registered for GST purposes will be required to remit any GST, net of input tax credits, to the Australian Taxation Office within the relevant period. Where the value of input tax credits exceeds the gross GST liability, a refund will be able to be claimed.

(6) Fees paid by horse and greyhound owners to racing clubs registered for GST purposes will be subject to GST. For registered owners, the GST paid can be claimed as an input tax credit.