Mr LUGG - 1998-08-18
What impact will the tax reform package have on the transport industry in the Territory?
ANSWER
Madam Speaker, I am sure that the package will be very positive and very beneficial to Territorians. It is a great shame that members opposite cannot be a little more truthful in representing the case for the taxation package announced last week by the Prime Minister and the federal Treasurer. The package will have very considerable benefits for Territorians. In the case of freight ...
Members interjecting.
Mr REED: I hear interjections from members opposite. They should reflect on the line they have pushed consistently, that freight costs for goods being transported to the Territory are very high and they impact very considerably ...
Ms Martin: Absolutely!
Mr REED: Very good! I have a commitment from the member. The member for Fannie Bay recognises that freight costs are high and that they contribute to the cost of goods in the Northern Territory. She must agree, therefore, that a reduction in freight costs will mean a reduction in the cost of goods to Territorians. It follows automatically.
Ms Martin interjecting.
Mr REED: She does not like the good news. She only likes the bad news.
Ms Martin interjecting.
Madam SPEAKER: Order! Member for Fannie Bay, listen to the answer.
Mr REED: Under the proposed Coalition tax system, the tax on diesel fuel will fall by 25 a litre. One of the biggest costs for the transport industry is fuel. It is expected that that contribution alone could reduce the cost of a trip by a heavy vehicle between Alice Springs and Darwin by up to $400. That will flow on directly to consumers. What will also flow on is the abolition of the 22% wholesale sales tax on trucks and related equipment, to be replaced by a 10% GST. This is a very good story. Those reductions in capital costs will flow through from the transport industry to the consumer as reduced freight costs, as will the abolition of the 22% wholesale tax on spare parts for the transport industry. That will be replaced by a 10% GST. Those benefits also will be reflected in reduced freight charges.
Members interjecting.
Mr REED: Look at them! Seven members, 7 stomachs, 7 intestine-free zones. You wouldn’t know what you’re on about. You are an absolute disgrace. Why don’t you have the guts to get up and tell the truth, and acknowledge the positive components of the tax package?
Mr BAILEY: A point of order, Madam Speaker! The minister is well aware that he has to direct his comments through the Chair and not at opposition members.
Madam SPEAKER: Minister, direct your remarks to me and please wind up your answer. Responses to questions are taking too long.
Mr REED: The Labor Party has no alternative but to agree with the position of the transport industry, as expressed by its national body, that the cost of freight will fall when the new taxation system is in place. Given that we obtain most of the goods that we consume from long distances away, our freight charges are high. This has always been recognised. Territorians will enjoy a greater benefit from the reductions in freight charges which will flow on through this innovative tax system. This country has waited for this system a long time. I suggest that all Territorians will benefit considerably from it.
ANSWER
Madam Speaker, I am sure that the package will be very positive and very beneficial to Territorians. It is a great shame that members opposite cannot be a little more truthful in representing the case for the taxation package announced last week by the Prime Minister and the federal Treasurer. The package will have very considerable benefits for Territorians. In the case of freight ...
Members interjecting.
Mr REED: I hear interjections from members opposite. They should reflect on the line they have pushed consistently, that freight costs for goods being transported to the Territory are very high and they impact very considerably ...
Ms Martin: Absolutely!
Mr REED: Very good! I have a commitment from the member. The member for Fannie Bay recognises that freight costs are high and that they contribute to the cost of goods in the Northern Territory. She must agree, therefore, that a reduction in freight costs will mean a reduction in the cost of goods to Territorians. It follows automatically.
Ms Martin interjecting.
Mr REED: She does not like the good news. She only likes the bad news.
Ms Martin interjecting.
Madam SPEAKER: Order! Member for Fannie Bay, listen to the answer.
Mr REED: Under the proposed Coalition tax system, the tax on diesel fuel will fall by 25 a litre. One of the biggest costs for the transport industry is fuel. It is expected that that contribution alone could reduce the cost of a trip by a heavy vehicle between Alice Springs and Darwin by up to $400. That will flow on directly to consumers. What will also flow on is the abolition of the 22% wholesale sales tax on trucks and related equipment, to be replaced by a 10% GST. This is a very good story. Those reductions in capital costs will flow through from the transport industry to the consumer as reduced freight costs, as will the abolition of the 22% wholesale tax on spare parts for the transport industry. That will be replaced by a 10% GST. Those benefits also will be reflected in reduced freight charges.
Members interjecting.
Mr REED: Look at them! Seven members, 7 stomachs, 7 intestine-free zones. You wouldn’t know what you’re on about. You are an absolute disgrace. Why don’t you have the guts to get up and tell the truth, and acknowledge the positive components of the tax package?
Mr BAILEY: A point of order, Madam Speaker! The minister is well aware that he has to direct his comments through the Chair and not at opposition members.
Madam SPEAKER: Minister, direct your remarks to me and please wind up your answer. Responses to questions are taking too long.
Mr REED: The Labor Party has no alternative but to agree with the position of the transport industry, as expressed by its national body, that the cost of freight will fall when the new taxation system is in place. Given that we obtain most of the goods that we consume from long distances away, our freight charges are high. This has always been recognised. Territorians will enjoy a greater benefit from the reductions in freight charges which will flow on through this innovative tax system. This country has waited for this system a long time. I suggest that all Territorians will benefit considerably from it.
Last updated: 09 Aug 2016