FED: No danger of constitutional crisis over GST Lees

AAP General News (Australia)
02-14-1999
FED: No danger of constitutional crisis over GST Lees

CANBERRA, Feb 14 AAP - Australia was in no danger of being pushed into a constitutional
crisis, despite the Australian Democrats' insistence that food be GST-exempt, party leader Meg
Lees said today.

Senator Lees said any talk of a constitutional crisis was nonsense.

"The Senate has been working with this government cooperatively ... there has been no
crisis, we will never block supply, there will never be a crisis," she told the Seven
Network's Face to Face program.

Senator Lees also rejected suggestions the Democrats were ignoring the wishes of voters by
insisting on the removal of food from the tax.

"The majority of Australians didn't even vote for this government, they got less than 50
per cent of the poll after preferences," she said.

Even fewer Australians voted for the government in the Senate, she said.

"We went into the election campaign saying very clearly that we would support the tax
package of whoever was in government and if it was the Liberal government we would ask that
the tax not be applied to food.

"We haven't changed that stance," Senator Lees said.

A welfare lobby suggestion that the government abandon its promised tax cuts in
return for lifting the GST on food was not an option, Senator Lees said.

The government could compensate for the loss of food in the GST by making the tax cuts
fairer, she said.

"At the moment in the government's package the top 20 per cent are going to get about 52
per cent of the tax cuts and we argue that is unfair.

"The top 20 per cent should get about 20 per cent of the tax cuts and also we are looking
at a couple of additional loopholes that people are using to minimise tax."

These loopholes included certain share transactions and the use of trusts.

The Democrats had not watered down their stance against a GST on food, Senator Lees said.

"We want the broadest possible definition but at the moment not including takeaway food and
restaurants ... they would have the GST applied."

The first Senate committee report would be presented to the Senate next week, she said.

Senator Lees refused to guarantee that the tax package would be passed by the government's
July 1 deadline.

"The deadline is that we deal with the bills starting on the 14th of April. We have given
an undertaking that we will be ready to go ... when we finish I don't know," she said.

AAP daw/gl/br

KEYWORD: TAX LEES

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