INTRODUCTION
In August 1998, the Howard Government released its tax reform plan, which
was entitled Tax Reform: Not a New Tax, A New Tax System (ANTS).
Subsequently, a package of sixteen bills to introduce a new tax system
were introduced into the House of Representatives in December 1998 and
passed by that chamber on 10 December 1998. The package of bills was introduced
into the Senate on 10 December 1998 and currently remains at the second
reading stage.
This inquiry is part of a broader Senate inquiry into ANTS. The Select
Committee on a New Tax System first reported in February and its final
report is due in April. This report is one of three reports prepared by
Senate References Committees into the likely effects of the legislation
on particular areas. This Committee has conducted its inquiry specifically
into the impact of the Governments' ANTS package on employment, education
and living standards.
The first chapter of the report considers the implications of the tax
package for employment in the Australian economy. The Committee heard
a wide range of evidence on this issue during the course of its program
of public hearings. The chapter discusses several other issues relevant
to the Committee's terms of reference, including the impact of the Government's
tax reform package on the provision of employment services, small business,
and contract employment.
The second chapter of the report looks at the Committee's examination
of the impact of a GST on the education sector, dealing first with matters
relating to schools, then with vocational education and training, with
adult and community education and with higher education. It discusses
the impact of direct costs, through charges for educational services and
the effect of compliance costs across the sector.
The third chapter looks more generally at the effect of the tax package
on living standards, particularly in relation to low income earners. The
chapter considers the impact on price inflation and wage costs, as well
as the adequacy of the proposed compensatory elements of the package.
This chapter also canvasses the issue of the reform of business tax arrangements
and the policy of incremental tax reform that appears to have been adopted
by the Government.
The conclusion of the report sets out the Committee's concerns and
recommendations.