PRIME MINISTER
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I STATEMENT BY THE PRIME MINISTER, THE HON P J KEATING MP
GST AND THE LIBERAL LIES
The GST pamphlet distributed today by te liberal Party is a glossy litany of lies and
distofwioas
Faced with the growing community cowcen about this iniquitos sad unnecessary tax
thange. Dr Hewson is now resorting to shameless half tuths which make a mockry of
his prom~ isd TNo-ims-Campag
The pqam* het dimfibtfd today purports to tell Autlian families how they will be
better off uamdr a Goods and SerVces Tax
It make the follwing a wwtiou:
IGST will mean the aboltion of sewn mar tares.
A fie. The coal export duty listed in the pamphlet has already been abolished.
Fwihenmort, Dr Hewson's promise to abolish ' customs duties" is rally doublspeak
for s zerotaiffpolicy whch will cost Austraian Jobs.
" MWry ofthe items you now buy are tared at anything up to 30 per cent under Labor's
current saes tan system. For example... garbage bags...
A distortiiom The wholesale sales axon grbage bags is ten per cent. Garbage bags
would be more cxponsiv under Dr Hewson's 15 percnt OST.
* Food wui1 acfagal be cheaper under the Cration
A le. Nowhere does Dr Hewsons slick pamphlet tell Australian famulies that takeaway
food and restarant meals will be taxed under the GST.
The GST wall go where no other Australian tax has gone before. Hamburgcs, hot
dogs, milkshake and barbecued chicken will all be taxed for the first time in our
histoiy. Why won't Dr I kwson tell Australian familics the truth? 6545
Futrnome th pbotograph in Dr Hewsonms pamphlet shows a range of supermuare
aasm not just baow foods The diswashing liqud and isues would atuact the GST.
" The GS7 m~ ae umnsfirer and simpler.
A he. IftheOST isso andleWfair, why won Hewson release dheCole
Commnitte report, which consm hundreds of pages of potential problem. and
Wnquitie in the OST? And if the OST really is fiim and, impler, why ame so many
sporting orpaisatos such as Tanis Auwa& and the National BdwAkebl Legu,
confused ad concerned about the impat of OST on thar sports? Why does die
proumnent horse racing idusby figue Coin Hayes bliev it wMl ruin rang i this
counuy Why am the builin ad 1 ourist idinria up mnam about t impact of die
GSTI The GST Wl n101 make taes smple. The GST wil affect eveay busines with
tuarnover as filde a SS0,000 per yev. Small busineses, currently uninmlvd in the
caoction, of wholesale sales ta or payroll tax, wMl be drawn ito the tax not to collect
t OST. How wil it help die Austalian, economy to create about 750,00 new tax
collection pobft
Thewrw will be no GS7' on-4. duatkm
A fie. Parmitw should, he told that they wil havt to pay GST on texiboom purchased
from boolcAbOM school inifonns, school shoes and, on public tranport for dd
dtsiu to and ft~ m schoo
-Family allowanwu wift be double& L
Why doessit Dr Hewson tell t whole truth? About 100,000 families will be tipe
off Family Allowanc wider Dr Hewsons F* ghbak poliqy
vill be no GS7 cm. . councll rates."
A lie. Under Dr Hewson, counci rates notic= will for the first time in owr hitory can
a IS per cenl tax on the water, ac ag and garbage collection components, Dr
Hewaonus 1= ca Goviernment spokesmsan, confimed this on Friday, obviously too lawe to
after die pamphle which had already been prin" e
T77OmS T will mean a , wdumo in invome
Thi does not oompute. If the $ 24 b~ lon proceedis from dhe GST arv used to abolish
existing taes, ther ns no money left for incom tax cuts. The incomie tax cubs promised
by Dr Hlewson would hav to he funded through nm than $ 10 billio wwih of cuts to
Federal Gavannadn sawics and progrms particuilarty in dhe aa of social security
and heafth
654.
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" There wll be no GST on. aale ofyour haue."
Why doesn't Dr Hewino's pamphlet tAl Austraria fitaics tha the cod of a honse winl
rise steeply becsuse of the GST on & Hbu dlding mateials and land dewlopuaiL
The pamphlet concludes: 7& h GST L part ofh chanvge that u neededfor o
children to be able to Iget jobs in thefiutare."
Tlti is die bst fie. Even. Dr Hlewsons own economic experts admit Ohere are no new
jobs in a GST. The OSTW-a tu -io n'qnigj ust when we don't need one. It would
wooodher ecorwmic wowth and disrupt Ausfnria business jus when we need it to
accclerte.
CANBERRA 21 Februay 1993 47