NT: Govt must monitor GST impacts Stott Despoja

AAP General News (Australia)
04-29-2001
NT: Govt must monitor GST impacts Stott Despoja

DARWIN, April 29 AAP - The government must immediately monitor the impact of the GST
on groups such as pensioners and social security recipients, Australian Democrats Leader
Natasha Stott Despoja said today.

Australian Bureau of Statistics inflation figures revealed that predicted impacts of
the GST had been wrong, she said.

ABS figures showed many services had risen by more than the 10 per cent GST.

House and car insurance rose by 38.5 per cent between July 2000 and March 2001 despite
the Australian Competition and Consumer Commission (ACCC) predicting only a seven per
cent rise.

Sports fees went up 12 per cent, hairdressing 11.7 per cent, electricity 12 per cent,
public transport and taxi fares 11 per cent, takeaway and restaurant meals 10.4 per cent,
and cigarettes 18 per cent.

"All of these things need to be monitored," Senator Natasha Stott Despoja told reporters.

"There's been a distinct lack of investigation and a lack of commitment by this government
to investigate the impact, good or bad, of the GST.

"They allowed for a level of inflation but we have seen unexpected impacts of the GST.

"If people are hurting, whether it's small business because the BAS (business activity
statement) was unnecessarily complex or the pensioners are suffering because of the so-called
clawback of two per cent, then those issues have to be looked at and they need to be looked
at quickly.

"You don't take that two per cent up-front off the pensioners and social security benefits
unless you are convinced that your compensation has been adequate to deal with the increased
costs of living as a consequence of the GST."

AAP rmg/arb/bwl

KEYWORD: TAX DEMOCRATS

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