Axe the Tax Period-Share the Dignity

The Coalition Government understands that the application of the GST to feminine hygiene products is an important issue to many people. Under the intergovernmental Agreement on Federal Financial Relations and Commonwealth legislation, a change to the rate or base of the GST would need to be supported by all of the States and Territories. It would also require the passage of relevant legislation to be passed by both Houses of the Commonwealth Parliament.

At the Council on Federal Financial Relations Tax Reform Workshop on 21 August 2015, the States and Territories considered a proposal from the Commonwealth to remove the GST from feminine hygiene products. As there was no unanimous agreement at the time, no change to the existing GST arrangements for feminine hygiene products will be progressed.

Not one State or Territory has raised this issue with the Treasurer or indicated a change to their jurisdictions’ earlier view, including at the most recent meeting of Sate and Territory Treasurers in Melbourne several weeks ago.

The Coalition Government has been taking action to successfully address the problem of a narrowing GST base for the States and Territories through increased integrity measures and expansion into digital services and low value goods that will yield an additional $1.9 billion dollars next year. This means more funds for hospitals, schools and police. We are also working with the Sates to make the GST distribution system fairer, more resilient and more sustainable.

The removal of items from the GST base is ultimately a matter for the States and Territories, who have not supported any change to the treatment of feminine hygiene products, including when being given the opportunity to do so.

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Carmichael Mine Project

Carmichael Mine Project

Financing for the Carmichael mine project is a commercial matter and the final decision on whether to proceed with the project rests with Adani.

The Government is not providing special treatment for Adani to access export credit finance. Adani, like any Australian export project proponent, is able to apply for loans from Efic under its Commercial Account. Loans on Efic’s Commercial Account are a matter for Efic’s majority independent Board of Directors. The Minister cannot, by law, direct Efic who to lend to on its Commercial Account.

Loans on Efic’s Commercial Account are only made where there is a market gap in the availability of finance for otherwise commercially viable projects. Projects must meet high environmental, social and governance standards.

The Carmichael mine project has gone through a rigorous process of Federal and State government approvals. Consideration of the company’s environmental history was the most comprehensive undertaken for any Australian project to date. The Government imposed 36 strict conditions on the Carmichael mine’s approval and these conditions have been validated and upheld in Australia’s independent courts.

The Government’s position on Adani is clear, unlike that of Labor. Bill Shorten is trying to walk both sides of the street – telling coal miners in regional Queensland he supports the mine; while telling voters in inner city Melbourne he’s against it. It’s another example that shows Mr Shorten can’t be trusted.

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