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Thursday, 25 November 1999
Page: 12699

Mr SWAN —My question without notice is directed to the Minister for Community Services. Minister, is it a fact that, in your electorate of Richmond, the Tweed Shire Council makes grants to community organisations such as the Tweed Heads Family Centre? Is it also a fact that the GST will apply to all local government grants, including those in your electorate? Minister, irrespective of what the Commonwealth does with its grants, what arrangements has the Commonwealth made in conjunction with the Tweed Shire Council and all other councils to ensure that their grants will not be cut by 10 per cent when your GST is introduced?

Mr ANTHONY (Community Services) —I thank the member for Lilley. Of course, he spends a lot of his time scaremongering and spreading fear amongst the most vulnerable people of the community, whether it is local councils, younger people or older people. As I have mentioned quite a few times in the parliament, grants that are made to charities that are registered and have an income over $100,000 will be subject to a GST. Of course, the actual grant itself will be increased to take that into account.

Mr Swan —Who by?

Mr SPEAKER —The member for Lilley has asked his question.

Mr ANTHONY —Clearly, charitable organisations just claim it back and it just washes through the system. That is exactly how it operates.