Senator HARRIS (2:43 PM) —My question is to the senator representing the Treasurer. Is it correct that the GST is applicable on the sale of livestock? Is it correct that after 90 days the purchaser of that livestock may apply to the ATO for reimbursement of the GST increment? Is it correct that, when the livestock is purchased from a source and is processed through an abattoir, at the point it is hung on the hook it is declared food and the purchaser of the livestock can then apply for reimbursement of the GST? Is GST paid on the sale of livestock revenue neutral to the Treasury? Do producers of livestock currently have a primary producers' sales tax exemption number, and is production of fruit and vegetables GST free?

Senator KEMP (Assistant Treasurer) —That is some question, I would have to say. I do not know whether I can persuade the Senate to allow me to continue on past the allotted four minutes! Senator, as always with your questions, I listened particularly carefully because one needs to—they are so detailed. Let me answer the points as far as I am able to in the sequence in which I think you raised them. Live animals will be subject to GST, while meat for human consumption will be GST free. For example, where primary producers sell live animals to processors who produce meat for human consumption, the sale of live animals will be subject to GST even though the processors' sale of the meat will be GST free. The pricing method will have no bearing on the taxable status of the live animals. In respect of cattle, sheep, pigs and other matters you raised, a carcass is considered food for human consumption once an authorised person has inspected it and either stamped it or passed it as food for human consumption. The GST status of a livestock sale will be determined at the time of supply—that is, at the point at which the transfer of ownership takes place. If the change of ownership takes place before the carcass has been dressed and becomes identifiable as food for human consumption, then the sale will be subject to GST even if the animal is dead. If the change of ownership takes place after the carcass has been dressed and it becomes identifiable as food for human consumption, the sale of the carcass will be GST free. On the other issue that was raised, the sales of hides and non-edible by-products will be subject to GST. As I said, this has been answered in some detail before in this chamber, Senator, but I will look very closely at the other aspects of your question, and if there is any additional information that you need, I would be delighted to give it you.

Senator HARRIS —Madam President, I ask a supplementary question. Given the fact that no GST applies to live exports of cattle under export conditions, what is the difference between a steer destined for slaughter and a steer destined for Indonesia? Will the senator request on behalf of livestock producers that the government consider enacting an amendment to the goods and services tax to allow the existing primary producers' sales tax exemption number to be used as an exemption number to exclude the GST in relation to the sale of livestock?

Senator KEMP (Assistant Treasurer) —Senator Harris has a great interest in the GST—

Honourable senators interjecting—

The PRESIDENT —Order! There are far too many interventions in the chamber, and senators know that that is disorderly.

Senator KEMP —Senator Harris, I think you have raised some interesting issues. If you go to the history of the GST, you will see that the farming sector was very keen to bring in a GST. We have had extensive discussions with the farming sector to make sure that the application of the GST to farming produce is one which not only is of great benefit to farmers but also is practical and effectively minimises compliance issues. I would like to look more closely at some of the detail in that question and, as always, I will get back to you as quickly as practicable.