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It was introduced by the Howard Government on July 1 , 2000 , replacing the previous wholesale Sales Tax system and various minor taxes such as Stamp Duty and Bank Account debits tax. INTRODUCTION OF THE G.S.T. The idea for a broad-based Value-added Tax was first proposed by Paul Keating in the mid-80s but was rejected by the then Labor Prime Minister Bob Hawke who believed it to be unpopular with the Australian public. The idea was refloated in 1991 by the opposition Liberal-National Coalition , and was the centerpiece of the opposition's platform at the 1993 Election , ironically when Keating was Prime Minister. However the opposition had difficulty explaining the policy, as illustrated in leader John Hewson 's infamous Birthday Cake Interview , and Keating's campaign exploited public distrust of the GST. The GST was seen as the main reason for the opposition's surprise election loss of the 'unloseable election' in 1993. When John Howard was re-elected leader of the Liberal party in 1995 , he entered the following year's election campaign indicating that he would "never, ever" reintroduce the GST. Howard subsequently led the Liberal-National Coalition to a large victory in the 1996 Elections . In the lead-up to the 1998 Election , Howard campaigned on the GST and narrowly won, describing the victory as a "mandate for my GST". Lacking a senate majority, and with Labor adamantly opposed to the introduction of the GST, the government turned to the minor parties for support. While the Democrats had opposed the GST during the 1998 election campaign, their leader, Meg Lees , was sympathetic to the notion of amending the government's GST legislation to make the tax fairer. The government had campaigned for wholesale reform, with the GST replacing all former sales taxes, as well as applying to all goods and services. Lees wanted exemptions to be made for food, education and other goods and services. After months of negotiations, the government relented, and the legislation was passed on June 28 , 1999 . While Lees viewed the watering down of the GST. legislation as a success, the issue split the Democrats. Senators Natasha Stott Despoja and Andrew Bartlett Crossed The Floor to vote against the GST. The move triggered a collapse in support for the Democrats from which they are yet to recover. Labor leader Kim Beazley still believed the tax was unpopular with the Australian public, and continued to oppose it during the government's second term. During the 2001 Election campaign, Labor made 'GST rollback' a centrepiece of its election platform. Labor attempted to reprise the effects of the birthday cake interview by deriding the application of GST to cooked and uncooked chickens, but failed to ignite public passion. Beazley lost the election, effectively ending all serious opposition to the GST. G.S.T. AND T.R.S. The removal of import duties has led to a change in discounts available when duty free shopping and the process for claiming tax savings. Previously goods could be purchased from suppliers offering duty free pricing upon presentation of a current passport and airline tickets. The goods would then remain sealed until the passenger had passed through the customs area at an airport. Following the introduction of the GST, a receipt for goods with a combined total over $300 is eligible for a refund of any GST paid upon exiting the country with refunds claimed at a TRS (Tourist Refund Scheme) counter at the airport. The advantage of this arrangement is that goods purchased up to a month prior to departure may be freely used within Australia prior departure as long as they are carried in hand luggage and presented when making a refund claim. This obviously does not extend to consumable goods such as food and beverages. EXTERNAL LINKS |
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