Fed: Labor says Libs amend electoral laws to avoid GST

AAP General News (Australia)
08-08-2001
Fed: Labor says Libs amend electoral laws to avoid GST

CANBERRA, Aug 8 AAP - The GST was so complicated, the Liberal Party was having special
legislation passed to avoid the cashflow problems it created on electoral funding, the
Opposition said today.

A Coalition spokesman yesterday confirmed the government had approved a change to laws
to enable the Australian Electoral Commission to pay public funding direct to Liberal
Party head office, rather than to its state branches.

All parties are entitled to taxpayer funds based on the number of votes cast for them
in each election.

But the GST has complicated arrangements for the Liberal Party because the states,
which currently receive the funds, must pay the GST on the funds they send to head office.

The change was defended by West Australian state director Peter Wells.

"To me it makes a lot of sense ... because why mess around with the GST if you don't
have to," he told the Canberra Times.

Opposition treasury spokesman Simon Crean said the change showed even the architects
of the GST were having trouble coping with it.

"Unfortunately for small business, the special amendment doesn't apply to them," Mr
Crean said in a statement.

"Small business, by contrast, has no choice other than to `mess around with the GST'."

AAP jph/daw/vr/bwl

KEYWORD: TAX LIBERALS

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