WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Concluding Comments
Endnotes
Contact Officer and Copyright Details
A New Tax System (Indirect Tax
Administration) Bill 1999
Date Introduced: 24 March 1999
House: House of Representatives
Portfolio: Treasury
Commencement: Immediately after the commencement of the A New
Tax System (Goods and Services Tax Administration) Act 1999, which,
if enacted, will commence on 1 July 2000.
This Bill proposes to amend
new Part VI of the Taxation Administration Act 1953 (TAA),
as proposed by the A New Tax System (Goods and Services Tax
Administration) Bill 1998 (GSTA Bill), by extending its scope to
cover the Wine Equalisation Tax (WET, or Wine Tax) and the Luxury
Car Tax (LCT) in addition to the Goods and Services Tax (GST).
Additionally, this Bill proposes to amend new
Part VI, as proposed by the GSTA Bill, to:
-
- Apply a 4 year limit within which there will be an entitlement
to a refund for importations
-
- Replace the fixed rate penalty for unpaid GST with a
commercially realistic interest charge based on the outstanding
balance of unpaid indirect tax
-
- Provide penalties for failing to provide information with
respect to the WET law(1) and the LCT law(2) as proposed with
respect to the GST law(3)
-
- Exclude from liability to penalty any breach of an obligation
resulting from an amendment to an indirect tax law where that
breach occurred before the 28th day after the granting
of Royal Assent to the amending law
-
- Extend the review rights embodied in the TAA to include
reviewable wine tax decisions and reviewable indirect tax
decisions, and
-
- Provide that upon any changes to the WET law or LCT law that
affects the cost of goods in a contract involving a supply or a
taxable dealing in those goods, the contract price will be
automatically altered by the difference in the tax payable on the
goods as a result of the change, unless the contract otherwise
provides.
1.0
A New Tax System (Goods and Services Tax Administration) Bill
1998
The GSTA Bill proposes to amend the TAA to
incorporate new provisions concerning the GST relating to:
-
- Assessments of GST
-
- Recovery of GST owing
-
- Penalties for non-compliance with GST obligations
-
- Special rules for certain entities such as partners of a
partnership, participants in a joint venture, liquidators and
receivers, and directors of a company
-
- The evidentiary effect of certain documents
-
- Reviewable decisions, and
-
- Miscellaneous administrative matters.
The GSTA Bill will also amend the existing
provisions of the TAA concerning secrecy, prosecutions and
offences, and taxation objections, reviews and appeals, to
incorporate certain matters relating to the GST.
2.0 Taxation
Administration Act 1953
The TAA and the regulations thereunder contain
important administrative provisions concerning the various taxation
laws administered by the Commissioner of Taxation. They include
those relating to:
-
- Providing the statutory authority for the office of the
Commissioner of Taxation, including appointment, tenure of office,
remuneration, delegation of powers, and related matters
-
- Secrecy and the provision of taxation information
-
- Offences and prosecutions
-
- Exchange control
-
- Departure prohibition orders
-
- The public and private rulings system, and
-
- The set of generic provisions regulating objections, reviews
and appeals in relation to taxation decisions made under various
Commonwealth tax laws, including income tax, fringe benefits tax
and wholesale sales tax.
3.0 Recent
History
On 13 August 1998 the Government released
details of its long awaited tax reform plan, embodied in the
publication entitled Tax Reform: not a new tax, a new tax
system (Tax Reform Plan).
A key aspect of the Tax Reform Plan is the
introduction of a GST to replace the current Wholesale Sales Tax
(WST), as well as a number of State indirect taxes. The Tax Reform
Plan as a whole formed a major component of the Government's policy
platform leading up to the Federal election held on 3 October
1998.
Following the Governments re-election, a package
of 16 Bills were introduced on 2 December 1998 to implement a GST
as well as some of the other tax reform measures contained in its
Tax Reform Plan. Six of those Bills introduce the GST, namely:
-
- A New Tax System (Goods and Services Tax) Bill 1998
-
- A New Tax System (Goods and Services Tax Administration) Bill
1998
-
- A New Tax System (Goods and Services Tax Transition) Bill
1998
-
- A New Tax System (Goods and Services Tax Imposition-General)
Bill 1998
-
- A New Tax System (Goods and Services Tax Imposition-Customs)
Bill 1998, and
-
- A New Tax System (Goods and Services Tax Imposition-Excise)
Bill 1998.
In addition to introducing the GST, the Tax
Reform Plan also proposed to introduce a Wine Equalisation Tax and
a Luxury Car Tax. On 24 March 1999 a package of ten Bills
introduced the WET and the LCT, namely:
-
- A New Tax System (Wine Equalisation Tax) Bill 1999
-
- A New Tax System (Wine Equalisation Tax Imposition-General)
Bill 1999
-
- A New Tax System (Wine Equalisation Tax Imposition-Customs)
Bill 1999
-
- A New Tax System (Wine Equalisation Tax Imposition-Excise) Bill
1999
-
- A New Tax System (Luxury Car Tax) Bill 1999
-
- A New Tax System (Luxury Car Tax Imposition-General) Bill
1999
-
- A New Tax System (Luxury Car Tax Imposition-Customs) Bill
1999
-
- A New Tax System (Luxury Car Tax Imposition-Excise) Bill
1999
-
- A New Tax System (Indirect Tax Administration) Bill 1999,
and
-
- A New Tax System (Wine Equalisation Tax and Luxury Car Tax
Transition) Bill 1999.
4.0
GST Overview
The GST proposed is a broad-based indirect tax
on final private consumption in Australia. It will tax the
consumption of most goods, services and any other things, including
things imported into Australia, but not to consumption outside
Australia. The GST rate proposed is 10%.
The GST is based on the Value Added Tax (VAT)
system, which has been adopted by nearly all OECD countries and
more than 80 others around the world. The GST concept of taxing
final private consumption is achieved by:
-
- imposing tax on supplies made by entities registered for GST
purposes, and
-
- allowing those entities to claim a full credit for any GST they
have paid on business purchases (or inputs). Such credits will be
known as input tax credits.
Consistent with other GST and VAT regimes, there
will be two types of non-taxable supplies, 'GST-free' and 'input
taxed', known in most other countries with a GST or VAT as 'zero
rated' and 'exempt' respectively.
GST-free supplies will not be taxed and input
tax credits will be allowed on things acquired to make the supply.
The main activities that will be GST-free include exports, certain
expenditure by tourists, health and medical care, education,
childcare, charitable activities and religious services.
Input taxed supplies will similarly not be
taxed, however no input tax credits will be allowed on things
acquired to make the supply. The main activities that will be input
taxed are financial services and residential rents.
The main Bill implementing the GST is the A New
Tax System (Goods and Services Tax) Bill 1998 (GST Bill, or GST Act
once enacted).
5.0
Wine Equalisation Tax
5.1 Brief
History of Wine Taxation
The Australian wine industry has been subject to
an array of taxation measures over the years, commencing in
1930.
These measures are summarised in the following
table:
Year
|
Taxation measure
|
1930
|
General rate of Wholesale Sales Tax (WST) of
2.5% introduced
|
1931
|
WST of 2.5% removed
|
1970
|
Excise of 50 cents per gallon applied
|
1971
|
Excise of 50 cents per gallon halved and then
removed after six months
|
1984
|
WST of 10% introduced
|
1986
|
WST increased to 20%
|
1993
|
WST increased to 31%
|
1993
|
WST reduced to 22% in October
|
1994
|
WST increased to 24%
|
1995
|
WST increased to 26%
|
1997
|
High Court decision on State franchise/licence
fees led to an increase in WST from 26% to 41% with the additional
15% rebated to the State governments and in turn rebated to
wineries for their cellar-door component of sales
|
5.2 Current
Taxation of Alcoholic Beverages
Alcoholic beverages in Australia are essentially
subject to either sales tax (which is an ad valorem tax) or
volumetric excise or both.
Ad valorem tax is a rate of tax, which is fixed
according to the value of the dutiable transaction or item.
A volumetric tax is also an indirect tax but one
directly related to the alcohol content of the beverage.
Wine is subject to sales tax at the rate of 41
per cent.
Beer and spirits are subject to a combination of
sales tax at the rate of 37 per cent plus a volumetric tax, which
is calculated by multiplying the percentage of alcohol content of
the beverage by a fixed dollar amount per litre.
5.3 Wine
Equalisation Tax Overview
As part of the Tax Reform Plan, the Government
proposed that wine, and beverages consisting primarily of wine,
will become subject to a wine equalisation tax to replace the
difference between the current 41 per cent WST and the proposed
GST. The WET will be in addition to any GST that may be
payable.
The introduction of a WET will mean that after
the abolition of WST and its replacement with a GST, wine prices
should be equalised back to current levels.
-
- WET will be a single stage tax applying generally to assessable
dealings in wine, unless an exemption applies, at the wholesale
level
-
- Wine will include any fruit wine or vegetable wine. WET will
also apply to any assessable dealings in cider, perry, mead and
sake
-
- WET will be imposed on the wholesale selling price of wine
-
- If wine is not sold by wholesale:
-
- tax will be imposed on the retail sale or use of the wine,
and
-
- will be based on alternative values such as the notional
wholesale selling price
-
- If the wine has already been taxed, then a credit for the
earlier tax will reduce the tax payable on the later dealing,
and
-
- WET will be calculated on the GST-exclusive value of wine in
most cases.
6.0
Luxury Car Tax Overview
As a result of the introduction of the GST
together with the abolition of WST, motor cars in general would
fall in price.
Luxury cars, however, would fall in price even
more dramatically as they are currently subject to 45% WST on the
value above a 'luxury' threshold, as opposed to 22% WST which
applies generally. The luxury threshold is specified in Schedule 6
to the Sales Tax (Exemptions and Classifications) Act 1992
as being a taxable value more than 67.1% of the motor vehicle
depreciation limit, currently $55,134.
WST is assessed on a taxable value known as the
uniform taxable value (UTV), which is a set percentage approved by
the Commissioner of Taxation for use in the motor vehicle industry.
The UTV is 77.75% of the tax-exclusive recommended retail selling
price. The UTV is also relevant for the purposes of the luxury
threshold test specified in Schedule 6 to the Sales Tax
(Exemptions and Classifications) Act 1992.
The resultant effect of the above WST rules is
that luxury motor cars for WST purposes are, broadly, those cars
with a recommended retail selling price in excess of $47,581
WST-exclusive, or $55,720 WST-inclusive.
The Government does not believe a dramatic price
reduction for luxury cars 'is appropriate'. To ensure, therefore,
that luxury cars only fall by about the same amount as a car just
below the proposed luxury car tax threshold, the Government
proposes to introduce the luxury car tax.(4)
The Rate of LCT is to be 25% calculated on the
value of the car above a LCT threshold.
The LCT threshold proposed is a GST-inclusive
value equal to the car depreciation limit that applies under
Subdivision 42-B of the Income Tax Assessment Act 1997 for
the year in which the supply of the car occurs. As mentioned
earlier, the car depreciation limit for the 1998-99 financial year
is $55,134. This is a departure from that proposed in the Tax
Reform Plan, which stated that the LCT threshold would be equal to
a GST-inclusive value of $60,000(5).
The LCT proposed is a single stage tax that will
be imposed on taxable supplies and importations of luxury cars. It
will be in addition to any GST that may be payable, but not levied
on the GST-inclusive price. It will be levied on the value of the
car after GST has been excluded.
The payment of LCT is to be incorporated into
the net amount payable under the GST system, or in the case of
importations, paid with customs duty. A system of quoting is
designed to avoid LCT becoming payable until the luxury car is sold
or imported at the retail level. Generally, a recipient will be
entitled to quote if the car supplied to them is expected to be
held solely as trading stock.
Unlike the GST, an entity that buys a luxury car
in the course or furtherance of an enterprise will not be entitled
to an input tax credit for any LCT payable.
Schedule 1 proposes amendments
to modify new Part VI of the TAA as proposed to be inserted by the
GST Administration Bill.
Most of the amendments proposed by this Bill
merely substitute references to 'GST' or 'GST law' with references
to 'indirect tax' or 'indirect tax
law'(6). A number of amendments also make substantive
changes to the provisions of proposed new Part VI of the TAA.
1.0 Substitution References to
'GST' With 'Indirect Tax'
Paragraphs 1.11 to 1.13 of the Explanatory
Memorandum (EM) adequately and succinctly identify the proposed
amendments that will extend the scope of proposed new Part VI to
cover the WET and the LCT.
1.1 Drafting Errors
Several drafting errors appear to have been made
in that non-existent or inappropriate provisions have been referred
to in the following provisions of Schedule 1 to
this Bill:
-
- Items 6, 8, 9, 11, 40, 41, 42, and
70
-
- Each of the definitions to be inserted by item
25
-
- New paragraph 36(1)(c) and new
subsection 36(2) to be substituted by item
37
-
- The references in each item of the table in new
subsection 62(2A) to be inserted by item
66, and
-
- New subsection 62A(3) to be inserted by
item 71.
2.0 Substantive
Changes
2.1 Time Limit on Credits and
Refunds
New section 36 of the TAA, as proposed to be
inserted by the GSTA Bill, provides that entitlements to GST
refunds will expire 4 years after the end of the tax period to
which they relate unless a claim is notified to the Commissioner of
Taxation before that time.
Item 37 proposes to substitute
the provision proposed by the GSTA Bill with another version of
new section 36 that will also apply the time limit
to the refund of overpaid WET and LCT included in the net amount
for a tax period, and also ensure that the 4 year time limit will
apply to indirect tax refunds attributable to an importation.
2.2 Unpaid Tax
New section 40 of the TAA, as proposed to be
inserted by the GSTA Bill, provides for a fixed rate penalty for
unpaid GST. New section 48 provides that the Commissioner may remit
the penalty if it is fair and reasonable to do so in the
circumstances of each particular case.
Item 44 proposes to substitute
the provision proposed by the GSTA Bill with another version of
new section 40 that will replace the penalty with
a general interest charge (GIC) on unpaid indirect taxes.
This will make the penalty treatment for the
late payment of indirect taxes consistent with that proposed for
other taxes by Taxation Laws Amendment Bill (No. 5) 1998, which was
passed by the Senate the week beginning 8 March 1999 and is now
awaiting Royal Assent.
Paragraphs 1.19 to 1.24 of the EM explain the
GIC in more detail as well as the manner in which it differs from
the penalty regime originally proposed.
2.3 Penalty for Failing to Provide
Information
New subsection 43(2) of the TAA, as proposed to
be inserted by the GSTA Bill, provides for a penalty for failure to
provide information (other than information relating to a GST
return), when required under the GST law, in relation to a taxable
supply or taxable importation.
Item 45 proposes to insert
new subsections 43(2A) and 43(2B)
to similarly provide for penalties for failure to provide
information (other than information relating to a GST return), when
required under the WET law and LCT law respectively.
2.4 Penalties Imposed by Indirect Tax
Amending Acts
Item 49 proposes to insert
new section 46A into the TAA so as to remove
liability for an indirect tax penalty which may otherwise be
incurred in the 28 day period after an Act amending an indirect tax
law receives Royal Assent.
The effect of the provision will be that until
the 28th day after Royal Assent is reached for an Act
amending an indirect tax law, a person cannot be guilty of an
offence or be liable to a penalty that arises from an infringement
of the amended law.
The provision will not affect the liability of
any person to pay any tax that is payable as a result of the
amended law.
2.5 Reviewable Decisions
The mechanisms and conditions for a person
dissatisfied with a taxation decision to object against the
decision and, ultimately, to request a review or appeal against the
decision are set out in existing Part IVC of the TAA. New Part VI
of the TAA, as proposed to be inserted into the TAA by the GSTA
Bill, will extend the operation of Part IVC of the TAA to
reviewable GST decisions.
Items 65, 66 and
70 will similarly provide for review rights to be
extended to cover reviewable wine tax decisions and reviewable
indirect tax decisions in addition to reviewable GST decisions.
2.6 Alterations to WET or LCT Laws To
Affect Contracts
Item 71 proposes to insert
new section 62A into the TAA, which will provide
that if a change to the WET law or the LCT law affects the cost of
goods in a contract involving a supply or a taxable dealing in
those goods, the contract price will be automatically altered by
the difference in the tax payable on those goods as a result of the
change.
The contract price will not be altered if the
contract provides otherwise.
2.6.1 Undesirable Ramifications
of Proposed New Section 62A
Proposed new section 62A has
the potential to effectively render contracts that may be affected
by changes to the WET law or the LCT law open-ended with respect to
price, and therefore unacceptable from a commercial
perspective.
It would appear that the only way to avoid such
problems would be for affected parties to make adequate provision
in contracts potentially affected to counter the prospect of
new section 62A having any unfavourable
impact.
1.0
Wine Equalisation Tax
1.1
Volumetric - v - Ad valorem
Following the release of the Government's Tax
Reform Plan and the inevitability of the imposition of an
additional tax on wine, debate turned to the nature of the tax to
be imposed. Should the tax be a 'value-based' or 'volume-based'
tax?
This has been the subject of considerable debate
both within the industry and between the WFA and Treasury.
The WFA, while recognising that they represent
members with divergent interests, came to the conclusion that it
would support an ad valorem tax and reject a volumetric tax. The
WFA came to this policy position after commissioning independent
research by the Centre for International Economic Studies at the
University of Adelaide on the implications of alternative wine tax
options being considered in the context of tax reform.
The results of this research clearly showed that
a switch from the current ad valorem wine tax to a volumetric tax
which raises the same government revenue would harm the industry as
a whole and especially the non-premium sector, even though it would
help the premium wine producers and consumers.(7)
The Winegrape Growers' Council of Australia Inc.
(WGCA) supports the WFA in rejecting a volumetric tax.(8)
The Vineyards Association of Tasmania Inc. (VAT)
opposes an ad valorem based wine tax arguing that 'the ad valorem
nature of the proposed WET adversely impacts on the small (less
than 500t) regional winery.'(9)
The National Small Wineries Coalition (NSWC)
similarly rejects an ad valorem tax and argues for a volumetric tax
on the basis that an ad valorem tax increases the price of quality
wine and hurts small wineries.(10)
1.2 Rate:
Does it reflect revenue neutrality and is it 'locked-in' at
29%?
The WFA recommended that the WET rate be set at
a maximum of 24.5 per cent. It concluded that the true WET level
for revenue neutrality would be somewhere between 19.6 per cent and
24.5 per cent.(11)
The rate has been set at 29 per cent.
The WFA also stated that the major influence of
taxation reform on the Australian wine industry will be the rate of
WET applied to wine under the package. The level will be critical
for the continued viability and competitiveness of the
industry.
The WFA continued to state that 'as long as the
rate of the WET is set so that there is no increase in the tax
burden on the industry'(12) the industry would accept the
additional tax in the short term.
According to the WFA data, it appears that by
setting the rate at 29 per cent the tax burden imposed on the
industry has increased.
Additionally, there doesn't appear to be
anything in the Bill to suggest that the WET will not be increased
above 29 per cent, even though the GST will purportedly be
locked-in at the rate of 10 per cent.
1.3 WET:
Should it be short term - to be removed in the long term?
WET is a distinct tax imposed on the wine
industry in addition to the GST. The goal, with respect to indirect
taxes, was stated to be a system that taxes a broad range of goods
and services at a single low rate.(13) WET will mean, however, that
the wine industry will still be subject to a differential tax
burden following the introduction of the GST.
The WFA support WET, but only in the short term,
and has stated:
While the Australian wine industry understands
that politically it may not be possible to remove these
differential taxes immediately, it considers that unless a sound
economic rationale for these can be demonstrated (for example,
quantifiable evidence of net negative externality effects) then the
government should consider reducing then removing such
distortionary taxes in the future.
The NSWC, WGCA, VAT and The Victorian Wine Grape
Growers' Council Inc.(14) all oppose the introduction of a wine
tax, arguing strongly for a GST-only tax on wine, based on the
Federal Government's own rationale, namely that any new indirect
tax (GST) must be simpler and more equitable than the current WST.
A new tax should therefore apply equally across all goods and
services. Additional taxes are incompatible with these
principles.
1.4
Exemption for Small Business for Cellar-door Sales and Promotional
Activity?
1.4.1 Cellar-door Sales
Exempt?
The WFA recommended that cellar-door sales for
small winery producers should be free from WET, although they
should be subject to the GST.
Apparently the amount of revenue raised from
small operators' cellar-door sales is small in aggregate terms but
on an individual basis is particularly important to the viability
of small wineries.(15)
Traditionally State governments levied a tax of
approximately 15 per cent on alcoholic beverages through State
business franchise fees. However, cellar-door sales were not
subject to these fees. In 1997, following a High Court
decision,(16) the State business franchise fees were considered
unconstitutional and the Commonwealth government introduced
measures to collect the revenue on behalf of the States. (Hence the
WST rate on wine increased from 26 per cent to 41 per cent).
The revenue is returned to the States. All
States then apply a 15 per cent rebate to wineries for all wine
sold through the cellar-door and have indicated that they will
continue this practice after the introduction of GST and
WET.(17)
Therefore, as long as the States continue to
honour a liquor subsidy scheme to wineries in respect of
cellar-door sales the small wineries will generally be in the same
position as they are now. (This assumes the rate of 29 per cent
does, in fact, reflect a revenue neutral position for the wine
industry.) It is unlikely, however, that relying on State based
subsidies is the most desirable and least complicated form of
effective exemption from WET.
For small wineries to remain in the current
position also assumes that potential distortionary effects of the
imposition of an additional tax on the industry over and above the
GST will not adversely impact on wine sales. The WFA is of the view
that the increased burden from the additional level of tax over the
GST is likely to have a serious adverse impact on investment and
viability in the small winery sector.
1.4.2 Promotional Activity
Exempt?
There are some benefits to the wine industry
from the introduction of the GST, including the fact that GST will
not apply to promotional activity (eg promotions, tastings and
samples). WET will, however, apply to such applications for own
use.
Currently, as with cellar-door sales, the States
rebate 15 per cent to wineries in respect of wine used in
promotional activity. The rebate is intended to continue, however,
the WFA remain of the view that promotional activity for all
wineries should be exempt from WET. Such a position would, they
believe, be consistent with the spirit of the Tax Reform Plan.
2.0
Luxury Car Tax
2.1
Rationale for Luxury Car Tax Questionable
One of the problems with the current WST system
identified in the Tax Reform Plan was the multiple rate structure;
exempt or one of six different tax rates.(18) The goal, with
respect to indirect taxes, was stated to be a system that taxes a
broad range of goods and services at a single low rate.(19) One of
the advantages of the GST was that it would apply only one rate to
taxable goods and services.(20)
The indirect tax system proposed includes the
GST, the LCT and a Wine Equalisation Tax, introduced at the same
time as the LCT. Together, there will be three different tax rates,
GST-free supplies and input taxed supplies.
It could be argued that differential rates of
tax have potentially distortionary effects, as well as compromise
administrative simplicity leading to increased compliance
costs.
Furthermore, it could be argued that it is wrong
to differentiate between persons on the basis of preferences, as
results with multiple rates. In fact, Fact Sheet No: 201 implies
that multiple rates are unfair.(21)
3.0
Naming of Wine Equalisation Tax and Luxury Car Tax
Bills
Presumably, the titles of the WET and LCT Bills
have been used to make it easier for the Parliament to identify
those which form part of the Tax Reform Plan package. From a
practical perspective however, the titles appear to be
unnecessarily lengthy and indeed cumbersome. The words 'A New Tax
System' could be deleted from each title without affecting the
relevance of the title to the particular piece of legislation.
-
- Wine tax law is defined in the A New Tax System (Wine
Equalisation Tax) Bill 1999 to mean:
-
- this Act; and
- any Act that imposes wine tax; and
- the A New Tax System (Wine Equalisation Tax and Luxury Car
Tax Transition) Act 1999; and
- the Taxation Administration Act 1953, so far as it
relates to any Act covered by paragraphs (a) to (c); and
- any other Act, so far as it relates to any Act covered by
paragraphs (a) to (d) (or to so much of that Act as is covered);
and
- regulations under any Act, so far as they relate to any Act
covered by paragraphs (a) to (e) (or to so much of that Act as is
covered).
2. Luxury car tax law is defined in the
A New Tax System (Luxury Car Tax) Bill 1999 to mean:
-
- this Act; and
- any Act that imposes luxury car tax; and
- the A New Tax System (Wine Equalisation Tax and Luxury Car
Tax Transition) Act 1999; and
- the Taxation Administration Act 1953, so far as it
relates to any Act covered by paragraphs (a) to (c); and
- any other Act, so far as it relates to any Act covered by
paragraphs (a) to (d) (or to so much of that Act as is covered);
and
- regulations under any Act, so far as they relate to any Act
covered by paragraphs (a) to (e) (or to so much of that Act as is
covered).
-
- GST law is defined in the A New Tax System (Goods and
Services Tax) Bill 1998 to mean:
-
- this Act; and
- any Act that imposes GST; and
- the A New Tax System (Goods and Services Tax Transition)
Act 1998; and
- the Taxation Administration Act 1953, so far as it
relates to any Act covered by paragraphs (a) to (c); and
- any other Act, so far as it relates to any Act covered by
paragraphs (a) to (d) (or to so much of that Act as is covered);
and
- regulations under any Act, so far as they relate to any Act
covered by paragraphs (a) to (e) (or to so much of that Act as is
covered).
-
- Costello, P., MP, 1998, Tax Reform: not a new tax, a new
tax system, at p 89; Explanatory Memorandum to the A New Tax
System (Luxury Car Tax) Bill 1999, at paragraph 1.22 and 5.3.
- Costello, P., MP, 1998, Tax Reform: not a new tax, a new
tax system, at p 89.
- Indirect tax law is defined in item 5
of this Bill to mean any or these:
-
- the GST law;
- the wine tax law;
- the luxury car tax law.
-
- Senate Select Committee on A New Tax System, Winemakers'
Federation of Australia Submission No. 938, at pp 27 to
29.
- Senate Select Committee on A New Tax System, Winegrape
Growers' Council of Australia Inc., Submission No. 880.
'WGCA's policy is one of strong support for the current ad valorem
system for the wholesale sales tax be maintained for the WET. The
alternative, a volumetric tax based on the volume of alcohol in
wine, would have a significant negative impact on the industry as a
whole, but particularly the three regions of the Riverland,
Riverina and Sunraysia because they produce the vast majority of
grapes used for wine at the lower end of the market. The three
regions also account for over 60% of all winegrape production in
Australia and to destroy the economic viability of these regions
would have a disastrous impact on the rest of the winegrape growing
areas of Australia.'
- Senate Select Committee on A New Tax System, Vineyards
Association of Tasmania Inc., Submission No. 84, Executive
Summary.
- Senate Select Committee on A New Tax System, National Small
Wineries Coalition, Submission No. 1322, Executive Summary.
- Senate Select Committee on A New Tax System, Winemakers'
Federation of Australia Submission No. 938, at p 28.
- Ibid., p 18.
- Costello, P., MP, 1998, Tax Reform: not a new tax, a new
tax system, at p 77.
- Refer to endnotes 8, 9 and 10 and to the Senate Select
Committee on A New Tax System, Victorian Wine Grape Growers'
Council Inc., Submission No. 1359.
- Senate Select Committee on A New Tax System, Winemakers'
Federation of Australia Submission No. 938, at p 39.
- Ha and Anor v State of New South Wales and
Ors 97 ATC 4674.
Held. By Brennan CJ, McHugh, Gummow and Kirby JJ, Dawson,
Toohey and Gaudron JJ dissenting, that the licence fees were duties
of excise within section 90 of the Constitution and hence were
invalid.
- Senate Select Committee on A New Tax System, Winemakers'
Federation of Australia Submission No. 938, at p. 38.
- Costello, P., MP, 1998, Tax Reform: not a new tax, a new
tax system, at p 72.
- Ibid., p 77.
- Ibid., p 80.
- Costello, P., MP, 1998, Tax Reform: not a new tax, a new
tax system, Fact Sheet No: 201.
Simon Lang
28 April 1999
Bills Digest Service
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