❓ Question challenges the Leader of the National Party on the impact of GST on fuel prices in rural WA, particularly regarding discriminatory effects and previous assurances. The response acknowledges the issue, highlights relief measures for some sectors, and suggests waiting for further data.
AnsweredQoN 240Legislative Assembly
QuestionView source ↗
I am reminded that when the Lang Labor Government introduced child endowment in New South Wales, the conservatives at that time said it was the first step towards the nationalisation of all children. My question without notice relates to the National Party policy of supporting the goods and services tax - (1) Does the Leader of the National Party agree with the findings of the Select Committee on Pricing of Petrol Products that “the way GST is applied on fuel is discriminatory and inequitable to country consumers”? (2) Does he now admit that he got it wrong when he told this Parliament that the GST would not lead to higher petrol prices in country Western Australia? Mr COWAN
AnswerView source ↗
(1)-(2) I presume that the reference by the select committee - I regret that I have not had a chance to read the report, but I will read it with some interest - is that the GST is applied, as was wholesale sales tax, to those other components of a product, such as freight. Freight costs for some regional products or products sold in regional areas will always add to the value of products and, consequently, increase the rate of tax. There is no question that that principle has been applied; I acknowledge that. We have made representations to the Federal Government suggesting that that discriminates against country people. That protest has fallen on deaf ears, as it did with successive Governments in relation to the issue of wholesale sales tax. In addition, I remind the Leader of the Opposition and members of this House that the fuel issue has been restructured in such a way that it offers considerable relief to a number of heavy transport operators, even though they are now feeling the brunt of high crude oil prices and the flow-on through the price of distillate. All heavy haulage transport operators have effectively been given relief of some 17¢ to 19¢ a litre through the tax reform package. Off-road fuel users, with the exception of those people who use fuel for the generation of power in diesel power stations, are entitled to a complete rebate of all fuel excise. It might be more appropriate for the Leader of the Opposition to ask that question after 21 October when we start seeing some business activity statements coming through and the return of the taxes that have been paid. We will then have a clearer indication of the different rates of taxation and excise that are paid on fuel and how that impacts on country people.
(1) Does the Leader of the National Party agree with the findings of the Select Committee on Pricing of Petrol Products that “the way GST is applied on fuel is discriminatory and inequitable to country consumers”? (2) Does he now admit that he got it wrong when he told this Parliament that the GST would not lead to higher petrol prices in country Western Australia? Mr COWAN replied: (1)-(2) I presume that the reference by the select committee - I regret that I have not had a chance to read the report, but I will read it with some interest - is that the GST is applied, as was wholesale sales tax, to those other components of a product, such as freight. Freight costs for some regional products or products sold in regional areas will always add to the value of products and, consequently, increase the rate of tax. There is no question that that principle has been applied; I acknowledge that. We have made representations to the Federal Government suggesting that that discriminates against country people. That protest has fallen on deaf ears, as it did with successive Governments in relation to the issue of wholesale sales tax. In addition, I remind the Leader of the Opposition and members of this House that the fuel issue has been restructured in such a way that it offers considerable relief to a number of heavy transport operators, even though they are now feeling the brunt of high crude oil prices and the flow-on through the price of distillate. All heavy haulage transport operators have effectively been given relief of some 17¢ to 19¢ a litre through the tax reform package. Off-road fuel users, with the exception of those people who use fuel for the generation of power in diesel power stations, are entitled to a complete rebate of all fuel excise. It might be more appropriate for the Leader of the Opposition to ask that question after 21 October when we start seeing some business activity statements coming through and the return of the taxes that have been paid. We will then have a clearer indication of the different rates of taxation and excise that are paid on fuel and how that impacts on country people.
(2) Does he now admit that he got it wrong when he told this Parliament that the GST would not lead to higher petrol prices in country Western Australia? Mr COWAN replied: (1)-(2) I presume that the reference by the select committee - I regret that I have not had a chance to read the report, but I will read it with some interest - is that the GST is applied, as was wholesale sales tax, to those other components of a product, such as freight. Freight costs for some regional products or products sold in regional areas will always add to the value of products and, consequently, increase the rate of tax. There is no question that that principle has been applied; I acknowledge that. We have made representations to the Federal Government suggesting that that discriminates against country people. That protest has fallen on deaf ears, as it did with successive Governments in relation to the issue of wholesale sales tax. In addition, I remind the Leader of the Opposition and members of this House that the fuel issue has been restructured in such a way that it offers considerable relief to a number of heavy transport operators, even though they are now feeling the brunt of high crude oil prices and the flow-on through the price of distillate. All heavy haulage transport operators have effectively been given relief of some 17¢ to 19¢ a litre through the tax reform package. Off-road fuel users, with the exception of those people who use fuel for the generation of power in diesel power stations, are entitled to a complete rebate of all fuel excise. It might be more appropriate for the Leader of the Opposition to ask that question after 21 October when we start seeing some business activity statements coming through and the return of the taxes that have been paid. We will then have a clearer indication of the different rates of taxation and excise that are paid on fuel and how that impacts on country people.
Mr COWAN replied: (1)-(2) I presume that the reference by the select committee - I regret that I have not had a chance to read the report, but I will read it with some interest - is that the GST is applied, as was wholesale sales tax, to those other components of a product, such as freight. Freight costs for some regional products or products sold in regional areas will always add to the value of products and, consequently, increase the rate of tax. There is no question that that principle has been applied; I acknowledge that. We have made representations to the Federal Government suggesting that that discriminates against country people. That protest has fallen on deaf ears, as it did with successive Governments in relation to the issue of wholesale sales tax. In addition, I remind the Leader of the Opposition and members of this House that the fuel issue has been restructured in such a way that it offers considerable relief to a number of heavy transport operators, even though they are now feeling the brunt of high crude oil prices and the flow-on through the price of distillate. All heavy haulage transport operators have effectively been given relief of some 17¢ to 19¢ a litre through the tax reform package. Off-road fuel users, with the exception of those people who use fuel for the generation of power in diesel power stations, are entitled to a complete rebate of all fuel excise. It might be more appropriate for the Leader of the Opposition to ask that question after 21 October when we start seeing some business activity statements coming through and the return of the taxes that have been paid. We will then have a clearer indication of the different rates of taxation and excise that are paid on fuel and how that impacts on country people.
(1)-(2) I presume that the reference by the select committee - I regret that I have not had a chance to read the report, but I will read it with some interest - is that the GST is applied, as was wholesale sales tax, to those other components of a product, such as freight. Freight costs for some regional products or products sold in regional areas will always add to the value of products and, consequently, increase the rate of tax. There is no question that that principle has been applied; I acknowledge that. We have made representations to the Federal Government suggesting that that discriminates against country people. That protest has fallen on deaf ears, as it did with successive Governments in relation to the issue of wholesale sales tax. In addition, I remind the Leader of the Opposition and members of this House that the fuel issue has been restructured in such a way that it offers considerable relief to a number of heavy transport operators, even though they are now feeling the brunt of high crude oil prices and the flow-on through the price of distillate. All heavy haulage transport operators have effectively been given relief of some 17¢ to 19¢ a litre through the tax reform package. Off-road fuel users, with the exception of those people who use fuel for the generation of power in diesel power stations, are entitled to a complete rebate of all fuel excise. It might be more appropriate for the Leader of the Opposition to ask that question after 21 October when we start seeing some business activity statements coming through and the return of the taxes that have been paid. We will then have a clearer indication of the different rates of taxation and excise that are paid on fuel and how that impacts on country people.
(1) Does the Leader of the National Party agree with the findings of the Select Committee on Pricing of Petrol Products that “the way GST is applied on fuel is discriminatory and inequitable to country consumers”? (2) Does he now admit that he got it wrong when he told this Parliament that the GST would not lead to higher petrol prices in country Western Australia? Mr COWAN replied: (1)-(2) I presume that the reference by the select committee - I regret that I have not had a chance to read the report, but I will read it with some interest - is that the GST is applied, as was wholesale sales tax, to those other components of a product, such as freight. Freight costs for some regional products or products sold in regional areas will always add to the value of products and, consequently, increase the rate of tax. There is no question that that principle has been applied; I acknowledge that. We have made representations to the Federal Government suggesting that that discriminates against country people. That protest has fallen on deaf ears, as it did with successive Governments in relation to the issue of wholesale sales tax. In addition, I remind the Leader of the Opposition and members of this House that the fuel issue has been restructured in such a way that it offers considerable relief to a number of heavy transport operators, even though they are now feeling the brunt of high crude oil prices and the flow-on through the price of distillate. All heavy haulage transport operators have effectively been given relief of some 17¢ to 19¢ a litre through the tax reform package. Off-road fuel users, with the exception of those people who use fuel for the generation of power in diesel power stations, are entitled to a complete rebate of all fuel excise. It might be more appropriate for the Leader of the Opposition to ask that question after 21 October when we start seeing some business activity statements coming through and the return of the taxes that have been paid. We will then have a clearer indication of the different rates of taxation and excise that are paid on fuel and how that impacts on country people.
(2) Does he now admit that he got it wrong when he told this Parliament that the GST would not lead to higher petrol prices in country Western Australia? Mr COWAN replied: (1)-(2) I presume that the reference by the select committee - I regret that I have not had a chance to read the report, but I will read it with some interest - is that the GST is applied, as was wholesale sales tax, to those other components of a product, such as freight. Freight costs for some regional products or products sold in regional areas will always add to the value of products and, consequently, increase the rate of tax. There is no question that that principle has been applied; I acknowledge that. We have made representations to the Federal Government suggesting that that discriminates against country people. That protest has fallen on deaf ears, as it did with successive Governments in relation to the issue of wholesale sales tax. In addition, I remind the Leader of the Opposition and members of this House that the fuel issue has been restructured in such a way that it offers considerable relief to a number of heavy transport operators, even though they are now feeling the brunt of high crude oil prices and the flow-on through the price of distillate. All heavy haulage transport operators have effectively been given relief of some 17¢ to 19¢ a litre through the tax reform package. Off-road fuel users, with the exception of those people who use fuel for the generation of power in diesel power stations, are entitled to a complete rebate of all fuel excise. It might be more appropriate for the Leader of the Opposition to ask that question after 21 October when we start seeing some business activity statements coming through and the return of the taxes that have been paid. We will then have a clearer indication of the different rates of taxation and excise that are paid on fuel and how that impacts on country people.
Mr COWAN replied: (1)-(2) I presume that the reference by the select committee - I regret that I have not had a chance to read the report, but I will read it with some interest - is that the GST is applied, as was wholesale sales tax, to those other components of a product, such as freight. Freight costs for some regional products or products sold in regional areas will always add to the value of products and, consequently, increase the rate of tax. There is no question that that principle has been applied; I acknowledge that. We have made representations to the Federal Government suggesting that that discriminates against country people. That protest has fallen on deaf ears, as it did with successive Governments in relation to the issue of wholesale sales tax. In addition, I remind the Leader of the Opposition and members of this House that the fuel issue has been restructured in such a way that it offers considerable relief to a number of heavy transport operators, even though they are now feeling the brunt of high crude oil prices and the flow-on through the price of distillate. All heavy haulage transport operators have effectively been given relief of some 17¢ to 19¢ a litre through the tax reform package. Off-road fuel users, with the exception of those people who use fuel for the generation of power in diesel power stations, are entitled to a complete rebate of all fuel excise. It might be more appropriate for the Leader of the Opposition to ask that question after 21 October when we start seeing some business activity statements coming through and the return of the taxes that have been paid. We will then have a clearer indication of the different rates of taxation and excise that are paid on fuel and how that impacts on country people.
(1)-(2) I presume that the reference by the select committee - I regret that I have not had a chance to read the report, but I will read it with some interest - is that the GST is applied, as was wholesale sales tax, to those other components of a product, such as freight. Freight costs for some regional products or products sold in regional areas will always add to the value of products and, consequently, increase the rate of tax. There is no question that that principle has been applied; I acknowledge that. We have made representations to the Federal Government suggesting that that discriminates against country people. That protest has fallen on deaf ears, as it did with successive Governments in relation to the issue of wholesale sales tax. In addition, I remind the Leader of the Opposition and members of this House that the fuel issue has been restructured in such a way that it offers considerable relief to a number of heavy transport operators, even though they are now feeling the brunt of high crude oil prices and the flow-on through the price of distillate. All heavy haulage transport operators have effectively been given relief of some 17¢ to 19¢ a litre through the tax reform package. Off-road fuel users, with the exception of those people who use fuel for the generation of power in diesel power stations, are entitled to a complete rebate of all fuel excise. It might be more appropriate for the Leader of the Opposition to ask that question after 21 October when we start seeing some business activity statements coming through and the return of the taxes that have been paid. We will then have a clearer indication of the different rates of taxation and excise that are paid on fuel and how that impacts on country people.
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