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Minister wrong on GST in New Zealand



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FRAN BAILEY SHADOW MINISTER FOR CONSUMER AFFAIRS

PRESS RELEASE

14 October 1992

MINISTER WRONG ON GST IN NEW ZEALAND

In Parliament today during Question Time the Minister for Consumer Affairs quoted from a press release dated 28 August 1992 from the New Zealand Consumer Affairs Minister, Ms Katherine O'Regan.

In that press release the New Zealand Minister expressed disappointment that some traders were not including the GST in the price of goods.

The Australian Minister for Consumer Affairs, Ms Jeanette McHugh, used that press release to launch an attack on the Coalition's proposed GST by implying that the New Zealand Minister was offering as the reason for that situation, that the GST was a very complicated system and that because of this complexity traders were finding it very confusing to administer.

At no stage does the New Zealand Minister say in her press release that the GST is complicated, and she certainly does not make the link between the GST and the unscrupulous practice of some New Zealand traders who are not showing a GST inclusive price.

Indeed I have spoken this afternoon with the New Zealand Minister for Consumer Affairs, Ms Katherine O'Regan, and these are her comments:

"Ms McHugh has taken my comments out of context. They bear no relationship to the system of GST, but everything to do with some traders not displaying the correct price. People prefer the GST to high personal tax. They believe it is fairer across the board."

When asked if she would want to get rid of the GST, her answer was definitely NO!!!

In Australia we have the authority under the Trade Practices Act to deal with unscrupulous traders who mislead or trade unfairly.

What we now need is a mechanism to hold this Federal Government accountable for its misleading statements to Australian consumers.

The Minister said in Parliament today that her Government has been trying to bring in measures to help and to make information more available, "to give the consumer, what the consumer demands, that is accurate information", she said.

I would ask the Minister, what about your hidden consumption taxes?

When are you going to tell Australian consumers about your hidden taxes?

COMMONWEALTH P A R L IA M E N T A R Y LIBR A R Y MiCAH

The Minister may say that she wants to provide consumers with accurate information, but in reality she continues to try and hide the fact that it is her Government that taxes Australian consumers indirectly on their fruit, vegetables, bread and all everyday items, with not one cent in compensation.

In fact, it was a report by the Government's own Centre of Social and Economic Modelling has confirmed that the Government's policy of high, indirect taxes hit those consumers who can least afford it, and that it would not be difficult to compensate low inctime households for the impact of the GST.

That report found that low income families already pay an average of $31 a week in existing consumption taxes, or eight times as much as they paid in income tax.

In stark contrast to this Government, the Coalition will more than compensate Australian consumers for the price effect of the GST.

ends

For further information contact Fran Bailey (06) 277 4493

Shopping with GSTUnder a Coalition Government income taxes will be cut by 30%, pensions increased by 8%, and all other benefits increased by 6%. Seven of Labor's hidden consumption taxes, including sales tax, fuel tax, and payroll tax will be abolished - the cost of which we pay right now on many everyday items without realising it.How GST will affect prices.From 1 October 1994, a GST of 15% will be introduced.The GST will not apply to some of the big items in your weekly budget like mortgage and loan repayments, health or life insurance, education, rent or local government rates. There is no GST on interest, financial transactions, on the sale of privately owned homes or on anything else you sell privately. The overall impact of the GST on prices will not be 15% because those seven, hidden taxes, which feed into the cost of everything we buy now, will be removed.Keating’s hidden sales tax on goods you buy now.Once sales tax and other hidden taxes are removed and the GST added, then most of these goods will be cheaper. H ere's what you pay now: Radios, televisions, videos, stereos. Cameras, watches, binoculars. Records, films, tapes.

Engagement rings.

A ll H id d en Taxes A b olish ed .

No longer will there be hidden taxes on goods that we buy at the supermarket. W hen the GST is introduced prices showing the GST will be clearly marked.

Incom e Tax C uts, increase in pen sion s and b en efits and fu e l savings.

As well as the benefits to families of income tax cuts of 30%, the doubling of the Family Allowance, and the 8% increase to pensions, we will put in place special compensation measures for low income earners and those on fixed incomes.

We will protect low income earners with GST special payments and increase their benefits by 6%.

We will protect those on fixed incomes, especially those who rely on their own savings. We will do this by providing a special wealth compensation payment to ensure their savings are protected.

l9CEfflSA U TREtfB

FAMILIES $38 A WEEK BETTER OFF '

Added to these measures, everyone will save at least $11 every time they fill up the family car.

^ W ith extra cash from these compensations 1 measures Australians will have more money in their pockets, even after paying the GST.

H ere is an exam ple o f h o w it works: yoveivm .C flz

JuU kl If you are a single earner with two children, earning a gross wage of $28,000 TIT ΠΤ p e r vear^ y 0 U will be about $38 a week better off - after you pay the GST.

If you uould like details of how much better off you will be under our Fightback plan contact

FRAN b At LEY M H R FEDERAL MEMBER FOR McEWEN 738 A HIGH STREET EPPING VIC 3076

TEL: (03) 408-6322

Authorised and printed by A. Robb. The Liberal Party, Cnr Blackall & Macquarie Sts. Barton 2600