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Monday, 24 May 1999
Page: 5234

Senator O'Brien asked the Minister representing the Treasurer, upon notice, on 2 March 1999:

(1) Will all thoroughbred and standard bred stallion and greyhound service fees attract the Government's proposed Goods and Services Tax (GST) on all their activities.

(2) If some services are to be exempt from the GST: (a) what will they be; and (b) what is the basis upon which an exemption from the GST will be granted.

(3) Where a race horse or greyhound is leased rather than purchased will the lease payments attract the proposed GST.

(4) Will the leases of race horses or greyhounds to non-residents attract the proposed GST.

Senator Kemp (Assistant Treasurer) —The Treasurer has provided the following answer to the honourable senator's question:

(1) Entities that are registered for GST purposes will be required to charge GST on their activities and will be able to claim input tax credits for the GST paid on purchases of business inputs. Businesses carrying on an enterprise with a turnover of $50 000 or more will be required to register for GST purposes, while those with a turnover less than $50 000 will have the option to register.

(2) GST free treatment exists for certain activities such as health and education services. Chapter 3 of the A New Tax System (Goods and Services Tax) Bill 1998 outlines the activities that qualify for GST-free treatment.

(3) Yes, where the lessor of the race horse or greyhound is a business registered for GST purposes. However, where the lessee is a registered business, the lessee will be able to claim input tax credits for the GST paid on the lease.

(4) If the horse or greyhound is situated in Australia, the lease to a non-resident would attract GST. If the horse or greyhound is exported, the lease would be GST free.