E&OE.................
Good evening. Now that The New Tax System has become law I want to report
to you on how our improvements are already working to the benefit of Australian
families.
In January the Government introduced the 30 per cent tax rebate for private
health insurance to reward those people who take personal responsibility
for their family's health care. Not only has this made health insurance
much more affordable but we now have a quarter of a million more Australians
in private health insurance than there would otherwise be.
We are also well on the way to abolishing the old unfair system of wholesale
sales tax with its many high and hidden rates. You are probably aware that
the sales tax on many items has already been reduced from 32 per cent to
22 per cent.
Over the last month, this has brought the price of many goods down. When
you shop around, you will find that the tax reductions have been passed
on for goods like radios and televisions, video recorders, stereos, cameras,
clocks and watches.
These and many other items will fall in price again when the wholesale sales
tax and other hidden taxes are abolished altogether after The New Tax System
officially begins in July next year.
The Government's consumer watchdog, the Australian Competition and Consumer
Commission, is already working hard to make sure that consumers benefit
from lower prices. There are tough penalties for those who do not pass on
the savings to ordinary consumers and if you think a business has not brought
down their prices as they should, particularly in country Australia, the
Commission is there to help.
The New Tax System will benefit all Australians and, in the months ahead,
the Government will continue to explain exactly how it will allow Australians
to share in the largest income tax cut in nation's history. Good night.