Department of the Legislative Assembly, Northern Territory Government

Mr BONSON - 2001-10-23

The federal Labor Party has announced that it will remove GST on energy bills. Can you advise the House of the effect of this policy on Territory households?

ANSWER

Madam Speaker, as we all know in this House, the GST is a regressive tax and it impacts most heavily on the poorest households. The CLP wants to expand this regressive tax and wants to see it include food. The candidate the CLP has for Solomon says he wants to have the GST right across everything, no exemptions, particularly on food. He wants it on vital items like water and sewerage. It is no wonder you wanted to dump him. He opens his mouth and says: ‘Let’s extend GST. Let’s have it on …

Members interjecting.

Madam SPEAKER: Chief Minister, would you resume your Chair for one moment, please. Clerk, could you perhaps give me some advice about members referring to candidates in a federal election, whether it is appropriate that this type of debate should go on?

Can I say, Chief Minister, that you are leaving yourself open to points of order from the opposition when you do this. I suggest that you be very careful - both sides - when you are referring to candidates in a federal election and discussing it within this House. Remember that this is, in fact, the Northern Territory parliament, and you should not be casting aspersions upon candidates who are standing for a federal election.

Ms MARTIN: Madam Speaker, in terms of the Territory, this is the Country Liberal Party’s candidate for the federal election for the seat of Solomon, and he is on the record

Madam SPEAKER: At least you said the seat of Solomon then. Just be careful you are not …

Ms MARTIN: The candidate for the seat of Solomon is on the record as saying he would like to see the GST expanded to include food.

Madam SPEAKER: I am concerned that we are into a federal election, and I do not want this House to become the target of debate against candidates who are standing for that federal election. I think you have to be very careful with what you actually say.

Mr BURKE : A point of order, Madam Speaker. I wondered if we were having a discussion on your ruling because I would like to contribute.

Madam SPEAKER: I think I have made my ruling fairly clear.

Ms MARTIN: The Beazley Labor pledge is that a GST will be removed from household energy bills, and I think every Territorian will welcome this. Despite the fact of the Country Liberal Party candidate saying that he would like to see GST on food, then …

Mr Burke: Oh, don’t be silly. Come on, answer the question.

Ms MARTIN: Your candidate said it. We have a very strong announcement from the federal Labor Party, through its leader, Kim Beazley, that the GST will be taken off electricity.

Mr Reed: $2 a week. It will allow them to buy an NT News each week.

Ms MARTIN: We all know, every Territorian, every time you get a bill, how tough those power bills are. The average power bill is probably something like $1200 a year. Some will be much more than that, but you would be hard pressed to find ones that are much lower than that. Currently, that sum is inclusive of GST. Removing the GST will provide - the member for Katherine dismissively says $2 per week - $100 per year. $100 per year to take the GST off power - very welcomed by the Electricity Supply Association of Australia on radio this morning. Their spokesperson recognises the high cost of power in the Territory, and says that because we pay that higher cost, when the GST comes off power here, there will actually be a greater saving than for other Australians. So, a very welcome initiative from federal Labor.

The savings that could be made from that, just extrapolating, of over $7.5m a year, right across the Territory. Imagine the injection of that into the Territory economy, just taking the GST off our power bills. This policy of rolling back the GST on essential items is a good policy for Territory households, and it is a good policy for the Territory economy.
Last updated: 09 Aug 2016