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Howard's flying tax slug



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M E D IA RELEASE

SHADOW MINISTER FOR TRANSPORT

LINDSAY TANNER MR

FEDERAL MEMBER FOR MELBOURNE

Howard’s Flying Tax Slug

Yesterday’s tax package represents a massive tax slug on Australia’s aviation industry, the Shadow Minister for Transport, Mr Lindsay Tanner said today.

“To start, we have the imposition of the GST on domestic airfares. This will not only have an adverse impact on the domestic tourism industry, but it will significantly increase the cost to Australians living in regional areas of

accessing medical, legal and educational services in major cities. Some people will almost certainly switch from travelling by plane to other modes, most likely cars, leading to an increase in road congestion and pollution.

‘The GST will also fall heavily on private aviators. Planes will increase in price by 10%, as will spare parts, pilot training, maintenance, and landing and parking fees at privatised and council owned airports.

“Once the Government goes through with its plan to privatise air traffic control, these services will also be taxed at 10%.

“However, the most insidious effect is the imposition of the GST on avgas. The GST will lead to an increase in the price of avgas of as much as 8 cents per litre in some regional areas despite the Government crowing that it had abolished avgas levies totally in the last Budget.

“The Coalition has long courted the aviation industry with the lure of lower taxes and charges. The truth of yesterday’s announcement is that under the Coalition, the aviation industry will pay more tax than it did under Labor.”

14 August 1998

For further information contact Lindsay Tanner or Warren Mundy on (03) 9347 5000.