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Local government victory on GST - but full impact of the tax package still not clear.



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MEDIA RELEASE

 

 

Issued 20 August 1998 

 

LOCAL GOVERNMENT VICTORY ON GST - BUT FULL IMPACT OF THE TAX PACKAGE STILL NOT CLEAR

 

The Australian Local Government Association has welcomed clarification by the Government that in addition to Council rates, wat er and sewerage charges being GST free, that Local Government charges for regulatory and licensing services as well as fines and penalties will be GST free. Compulsory garbage will also be GST free.

 

Cr John Campbell met with the Minister for Local Government, Alex Somlyay, yesterday to clarify the application of the GST to Councils.

 

"ALGA campaigned hard to have Council rates and services quarantined from any GST - while the Government has not guaranteed that all Council services will be GST free it has gone along way to alleviate Local Government concerns about the possible impact on ratepayers of a GST," said Cr Campbell.

 

"ALGA has commissioned KPMG to analyse the full impact of the tax package on Local Government.

 

"Despite the win on Rates, Local Government is still very concerned about a proposal to handball responsibility for federal financial assistance grants for Local Government to the States.

 

"It is also important that Local Government is at the negotiating table when implementations details for the tax package are determined."

 

The Australian Local Government Association will release a detailed response to the tax package next week.

 

Ends.

 

For further information - Jane O’Dwyer   0419 93 7336.

 

 

AM