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Victorian Local Government cheaper to run under Hewson

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Victorian Local Government Cheaper to Run Under Hewson Victorian Councils will be cheaper to run under a Hewson Coalition Government, peak local Government bodies in Melbourne were told today.

Shadow Minister for Local Government & the A.C.T, Senator Ian Macdonald, met in Melbourne today with the Institute of Municipal Management and the Metropolitan Municipal Association as part of a nation-wide campaign to explain the benefits of the Fightback! package for Councils. (Senator Macdonald will meet with the Municipal Association of

Victoria in Melbourne on 14th August)

Senator Macdonald told the IMM and the MMA that all Councils would be cheaper to run as a result of the Coalition's decision to abolish Fuel Tax, Payroll Tax, Training Levy.

"Councils will continue to pay no Wholesale Sales Tax - it will be completely abolished."

"Nor will Councils be burdened by the Goods and Services Tax - GST paid by Councils on inputs will be refunded in full."

"Businesses supplying services to Councils will provide their services at a lesser tender price, because they too will no longer pay Fuel Tax, Payroll Tax, Sales Tax or Training Tax - and Labor's proposed hikes in compulsory superannuation will also be scrapped."

"As a result, Councils will be able to provide existing services at a lower cost."

Senator Macdonald rejected claims that the GST would result in increased administrative costs for Councils, pointing to the Municipal Association of Victoria which has said that on external expert advice the administration burden would be "minimal."

"Current Council rates will fall as a result of the Fightback! savings."

"For the ratepayers, there will only be a GST on part of that reduced rate bill - that part which relates to Councils' commercial services."

"The M.A.V. estimate that any increase in costs for ratepayers will be under 2%, but this will be more than compensated through other Fightback benefits including 30% less income tax, petrol 19 cents a litre, doubled Family Allowance for most recipients. 8% increases fo pensions and bio rises in other Government payments." r — ---------------- ---


5th August 1992 For further comment phone Senator Macdonald on (077) 713066 PARLIAMENTARY LIBRARY MiCAH

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