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NSW Shires Association Secretary - wrong on fightback



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P A R L I A M E N T O F A U S T R A L I A ■ T H E S E N A T E

SENATOR IAN MACDONALD UBERAI SENATOR FOR QUEENSLAND

SHADOW MINISTER FOR LOCAL GOVERNMENT A THE ACT

NSW Shires Association Secretary - Wrong on Fightback

Comments today by the New South Wales Shires Association secretary, Murray Kidnie, show he has misunderstood the? Coalition's Fightback package as it effects Local Government.

Shadow Minister for Local Government, Senator Ian Macdonald, said the reported comment by the Association, that the Opposition plan would "subject Councils to GST on both inputs and outputs," showed a complete misunderstanding of the Fightback package. .·

"The GST Councils pay on inputs will be refunded in full, so there is no GST on Council inputs."

"In addition to not being burdened by GST, Councils will no longer have to pay any Fuel Tax, Payroll Tax, Training Guarantee Levy, and they will still pay no Sales Tax - All of these existing taxes will be scrapped, and that means enormous savings for Councils."

"I have challenged the Labor Minister, Mr Simmons, to find me one Council which wont be cheaper to run under a Hewson Government - and he hasnt been heard from since."

"As far as outputs go, there Is only GST on that part of the rate notice related to commercial services provided by Councils."

"The Australian Local Government Association has made a detailed submission to the Coalition's GST Planning and Co ordination Office, which is currently being considered."

On the suggestion that there was any "fighting back" at last week’s meeting, Senator Macdonald said the meeting between the ALGA and senior Coalition representatives was simply part of an on-going process of regular consultation between Local Government and the Coalition.

"I welcome and encourage very close relations between the incoming government and leaders of the third tier of government in Australia."

Detailed analysis of the Coalition's proposals by the Municipal Association of Victoria showed very little effect on Council rates.

"The MAV have said GST is "No Big Deal," and further indicated that rates in Victoria would be unlikely to increase by more than 2%"

"The Coalition has allowed for a 4.4% CPI Increase, and has announced big savings for the ratepayer to more than compensate for any increase in prices. Savings to ratepayers will include 30% reductions in personal income tax, petrol 19 cents a litre cheaper, and big increases in pensions and other government payments."

10th June 1992 Forjurther comment phone Senator Macdonald on (0181 180037 or f(?81 2127877 ________ Ί Ο ’Λ Ί 71, . F CAIRNS CANDCKRA

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