Department of the Legislative Assembly, Northern Territory Government

Mr TOYNE - 2000-03-02

School councils that receive grants from the Northern Territory government will now be liable for GST. If the council receives a $1000 grant, the council will have to pay GST of $90.91, meaning they will only have $909 to spend. The Commonwealth has indicated that it will gross up grants to organisations to ensure the underlying value of the grant remains the same. Can the minister assure school councils and other charitable organisations that the Northern Territory government grants will also be grossed up to maintain the value of the original grant?

ANSWER

Mr Speaker, is that the advice you got from Clare’s economic advisor?

Mrs HICKEY: A point of order, Mr Speaker! The minister has referred to the Leader of the Opposition by name. It’s not part of parliamentary practice.

Mr SPEAKER: The minister should not refer to a member by a personal name, but by electorate or position.

Mr LUGG: As I said before in an answer to a previous question about GST and the tax system, there will be phasing-in arrangements where there will be a little bit of give and take. But the Northern Territory government

Members interjecting.

Mr SPEAKER: Order! Order!

Mr LUGG: Earlier in these sittings, the Treasurer introduced a range of tax arrangements that were being put in place by the Northern Territory government to overcome some of the difficulties of phasing in a new tax system. There will be difficulties in the short term, there will be give and take, but the main thrust of the NT government’s approach to this is to make sure there is equity and fairness, and to make sure that the phase-in as smooth as possible.
Last updated: 09 Aug 2016