Establishment of a select committee

(1) That a select committee, to be known as the Select Committee on the Impacts of the New Tax System be established to inquire into and report, by 31 December 2001, on the social and economic impacts of the new tax system (NTS) and, in particular, the introduction of the goods and services tax (GST), with reference to the claims, estimates and projections that underpinned the Government's proposals for the NTS, particularly those contained in Tax reform: not a new tax, a new tax system.

Matters to be explored by the committee

(2) That, in conducting its inquiry, the committee examine the following matters:

(a) the effects of the introduction of the GST (and associated compensation package) on disposable income and household spending power for a range of income groups;

(b) the effectiveness of the NTS in easing the poverty traps facing people on low incomes, and in reforming and streamlining tax and income support for families with children;

(c) the effects of the NTS on tax avoidance and evasion, including an examination of the effects on the cash economy;

(d) the effects of the NTS on small business;

(e) the effects of the NTS on taxation compliance costs;

(f) the effects of the NTS on the non-profit sector, including the total amounts of money contributed by the sector, administrative costs, impacts on the viability of the organisations, and the consequent effects on the well-being of the community;

(g) the effects of the NTS on:

(i) national Gross Domestic Product,

(ii) national export performance and national debt,

(iii) the national Consumer Price Index, and

(iv) the distribution of wealth in the Australian community;

(h) the levels of revenue generated or foregone due to the NTS and subsequent related policy announcements by the Government;

(i) the effects of the NTS on future federal budget revenues, expenditures and surpluses; and

(j) options for amending the legislation which underpins the NTS to improve its fairness, simplicity or efficiency.

Composition of the committee

(3) That the committee consist of 7 senators, 3 nominated by the Leader of the Government in the Senate, 3 nominated by the Leader of the Opposition in the Senate, and 1 nominated by the Leader of the Australian Democrats.

(4) That the committee may proceed to the dispatch of business notwithstanding that not all members have been duly nominated and appointed and notwithstanding any vacancy.

(5) That:

(a) senators may be appointed to the committee as substitutes for members of the committee in respect of particular matters before the committee;

(b) on the nominations of the Greens or independent senators, participating members may be appointed to the committee; and

(c) participating members may participate in hearings of evidence and deliberations of the committee, and have all the rights of members of the committee, but may not vote on any questions before the committee.

(6) That the committee shall elect as its chair a member nominated by the Leader of the Opposition in the Senate.

(7) That the committee shall elect as its deputy chair, immediately after the election of the chair, a member nominated by the Leader of the Government in the Senate.

(8) That the deputy chair act as chair when there is no chair or the chair is not present at a meeting.

Powers and administration of the committee

(9) That the committee have power to send for and examine persons and documents, to move from place to place, to sit in public or in private, notwithstanding any prorogation of the Parliament or dissolution of the House of Representatives, and have leave to report from time to time its proceedings and the evidence taken and such interim recommendations as it may deem fit.

(10) That the quorum of the committee shall be a majority of the members of the committee.

(11) That the committee set 28 July 2001 as the date for receipt of submissions, but that the committee be empowered to receive and consider submissions at any later time.

(12) That the committee hold hearings in each state and territory as required.

(13) That the committee be provided with all necessary staff, facilities and resources and be empowered to appoint persons with specialist knowledge for the purposes of the committee with the approval of the President.

(14) That the committee be empowered to print from day to day such documents and evidence as may be ordered by it and a daily Hansard be published of such proceedings as take place in public.