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Freight cost advantage for businesses in northern Australia



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Media Release

FREIGHT COST ADVANTAGE FOR BUSINESSES IN NORTHERN AUSTRALIA

Businesses in northern Australia can look forward to a dramatic 20 to 50 per cent drop in cost disadvantages as a result of the Federal Coalition's Tax Reform Package.

The Shadow Minister for Regional Development, External Territories and Northern Australia, Senator Grant Tambling, said the Federal Coalition planned to achieve the reduction through reforms including a $20 billion cut in business taxes.

"Businesses in the north need to weigh up the freight and transport advantages that will flow through to them from the Tax Reform Package, as well as the massive cuts in petrol and diesel costs.

"Importantly, the removal of sales tax and fuel excise on the trucking industry will dramatically cut costs and freight for people in remote areas as well as help this vital industry. Unlike the current sales tax on freight, GST on freight will be rebatable as a business input.

"The removal of payroll tax will boost business and create more jobs, particularly in the mining industry and small business." (The figure for the NT is $50 million)

Senator Tambling said the package provided for the abolition of seven taxes as well as significant cuts in capital gains tax and fringe benefits tax.

The seven taxes are: the wholesale sales tax; payroll tax; petroleum products excise; superannuation lump sum tax; customs duties (to be phased out by the year 2000); training guarantee levy; and the coal export duty.

"The reform package also attacks major ‘cost disadvantages to business such as the waterfront, telecommunications, aviation, shipping and development approval processes.

"The introduction of a 15 per cent Goods and Services Tax (with specific items zero-rated or exempt) will reform and simplify our grossly inefficient taxation system and enable Australian businesses to be more internationally competitive."

ENDS Contact: Senator Grant Tambling 089-813567 Tiz Zeroni 089-813567

21.11.91 -- ■

COMMONWEALTH PARLIAMENTARY LIBRARY MICAH