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Wednesday, 5 September 1984
Page: 445

Senator GARETH EVANS (Attorney-General)(10.19) —I move:

That the Bills be now read a second time.

I seek leave, Mr President, to incorporate the second reading speech in Hansard.

Leave granted.

The speech read as follows-

These nine Bills will give effect to the proposal announced by the Treasurer in the Budget Speech to impose sales tax on Australian alcoholic grape wines and ciders and to adjust the level of sales tax on non-grape wines and imported grape wines and ciders.

The Bills will impose tax on these beverages at the new rate of 10 per cent.

These Bills do not change any of the exemptions from sales tax, nor any of the classifications of goods into particular tax rates. These matters are covered by the schedules to the Sales Tax (Exemptions and Classifications) Act.

Some deletions of existing exemptions, as well as changes in the sales tax classification of goods, to give effect to budget announcements are, however, proposed by the Sales Tax (Exemptions and Classifications) Bill 1984 that I will introduce shortly. That Bill will specify the alcoholic grape wines, non-grape wines and ciders to be subject to the new 10 per cent rate of tax to be imposed by this Bill.

As the new rate of sales tax is to be imposed from 8 p.m. on Budget night, 21 August 1984, these Bills, when enacted, will take effect at that time.

The sales tax is basically a tax on wholesale sales and, in the ordinary case of sales by a wholesaler to a retailer, the new rate of tax will accordingly apply to sales made at or after 8 p.m. on Budget night.

As usual, an explanatory memorandum covering technical aspects of these Bills and the Sales Tax (Exemptions and Classifications) Amendment Bill and providing a detailed statement of the effect of these measures has been circulated to honourable senators.

The result of the imposition of the new 10 per cent sales tax rate and other changes announced in the Budget will be a net increase in revenue estimated at some $44m in 1984-85 and $56m in a full year.

I commend the Bills to the Senate.

Debate (on motion by Senator Reid) adjourned.