Senator LUNDY —My question is to the Assistant Treasurer, Senator Kemp. Is the minister aware of the meaning and intent of the following tax ruling:

If the disability service business produces commercial supplies, then those supplies will be subject to GST.

Doesn't this clear ruling from the tax office mean that services which provide supported employment to people with disabilities and which produce commercial supplies—such as the packets of lollies sold at Christmas time, ironing services and plants sold in local nurseries—will all carry the Howard-Lees GST liability?

Senator KEMP (Assistant Treasurer) —As our leader, Senator Robert Hill, always says, you know you are in trouble when Senator Lundy asks a question!

The PRESIDENT —Senator Kemp, that is not the appropriate way to start answering a question.

Senator KEMP —Thank you, Madam President. A very important point was made today on the radio which I wish to share with Senator Lundy and the other Labor senators. Mr Hugh Wirth of the RSPCA made a comment about the Labor Party's `scare campaign'—and this is the truth. We are witnessing this from the Labor Party, a party which has no policies, has no intention of developing any policies and is simply determined to get out and scare people who are trying to help the disadvantaged in this community. It is really quite appalling, Senator Lundy, and I am surprised that you would lend yourself—

The PRESIDENT —Senator Kemp, you should not be directing your answer across the chamber.

Senator KEMP —As I said—through you, Madam President—I am very surprised that some of the Labor senators are prepared to lend themselves to a scare campaign. The general principle, Senator, is that if they are commercial supplies they will be subject to GST; non-commercial supplies will not be subject to GST.

The question is of course whether the examples you have given are commercial supplies or not. They may well be non-commercial supplies. That is a matter for the organisation. If the organisation is unsure, what the organisation would do is check with the tax office. But, Senator, I would want to see whether they were commercial supplies. In fact they may well be non-commercial supplies, and if they are non-commercial supplies they will not be subject to the GST.

Senator LUNDY —Madam President, I ask a supplementary question. Does this mean that the government will now be taking its cut from the money raised by people with disabilities through the operation of the Howard-Lees GST, purely on the grounds that these industries are able to provide viable commercial competition?

Senator KEMP (Assistant Treasurer) —Madam President, the supplementary was written before the answer. I have constantly urged Labor senators to listen very carefully to the answer in case they have a supplementary—and we are always happy to take supplementaries because if we can provide any further help that is what we will seek to do.

Senator, you did not deal with the issue of whether the particular supplies that they are making are commercial supplies or non-commercial supplies. Until that can be determined, I suspect many of them may well be non-commercial. That is a matter of fact which would have to be determined by the organisation. If the organisation had any doubts, the organisation would then seek advice from the tax office.