Senator WEST (2:21 PM) —My question is addressed to Senator Kemp, the Assistant Treasurer. I ask: can the minister confirm the advice that has been provided to me that, on a loan agreement between wheat growers and the Australian Wheat Board in lieu of crop sales, GST will not be applicable to the loan principal or interest charges, but the supply of the loan facility by the AWB will be input-taxed as a financial supply? Will the same GST arrangements apply to similar loans provided by the Australian Barley Board, the Grain Pool of Western Australia and the South Australian Cooperative Bulk Handling Ltd?

Senator KEMP (Assistant Treasurer) —Thank you, Senator West. I have some information here. I would like to have a close look at the question and then provide you—

Senator Schacht —Oh!

Senator KEMP —I imagine it is a serious question. It is a question which probably involves a taxation ruling. I want to look closely at the question to make sure that we provide you with the information you want. Farmers will be able to claim input tax credits on their business inputs, as you are aware. The Australian Taxation Office is working with the industry to determine the time at which the GST liability will arise for farmers operating on an accrual basis. We are very proud of what we are doing for the farming industry. The farming industry was and is one of the strongest supporters of tax reform in this country.

Senator Cook —Rubbish.

Senator KEMP —`Rubbish', says Senator Cook. The truth of the matter is that the farmers were right there at the start seeking tax reform for the simple reason that it will deliver very large and substantial benefits to the farming industry. We are very proud that we have worked very closely with the farming industry on the development and implementation of tax reform. I will look at the issues you have raised and provide you with a detailed response.

Senator WEST —Madam President, I ask a supplementary question. Most of my question relates to asking the minister to reiterate the answer that he has previously given me to a question on notice. Can he also confirm that the conditions which must be met to make a GST-free export are that goods must be exported from Australia by the supplier within 60 days of that supplier first receiving any consideration or issuing an invoice for the goods? How does the government plan to enforce this requirement in relation to wheat exports given that export grain is often held for a considerable period, certainly longer than 60 days, prior to shipment from Australia?

Senator KEMP (Assistant Treasurer) —I think we did have a discussion on the sale of wheat in this parliament. Where wheat is supplied by the growers it will not be differentiated by the growers themselves.

Senator Forshaw —What?

Senator KEMP —I will go through it. This is the answer that was given to Senator West. Wheat supplied by the growers will not be differentiated as the growers themselves do not export the wheat. GST will have to be paid by the growers on all of their sales to the Australian Wheat Board. The Australian Wheat Board is entitled to input tax credits for all of the GST included in the price paid to growers.

Senator Schacht —You don't understand one word you're reading out at the moment.

The PRESIDENT —Senator Schacht, your behaviour is disorderly.

Senator KEMP —I was asked about the accounting for tax on export sales. That is precisely what I am suppling to Senator West. If there is any more information that I can supply to you, I certainly will supply it.