Dear Mr
Moxon,
Thank you for your letter
of 6 July 1998 to the Treasurer concerning the
impact of tax reform on people with
disabilities. The Assistant Treasurer has asked
me to respond to your letter. I apologise for
the delay in responding.
The Government announced
in Tax Reform: not a new tax, a new tax
system that the precise scope of GST-free
treatment for a number of areas would be decided
following advice from the Tax Consultative
Committee following the election. The Tax
Consultative Committee, chaired by Dr David Vos,
reported to the Government on 13 November. The
recommendations of the Tax Consultative
Committee have been reflected in the
GST legislation recently introduced into
Parliament, including a list of appliances and
aids that have been specifically designed for
people with an illness or disability and are not
of a kind ordinarily used in the wider
community.
The Committee considered
that it was not possible to extend the list to
items used more widely in the community because
of the need to reduce compliance and
administrative costs and ensure that its
recommendations did not have adverse revenue
impacts.
The Government's
legislation also provides for GST-free treatment
for a number of services for people with
disabilities in the areas of residential and
community care and specific services funded
under the Disability Services Act or
complementary State or Territory
legislation.
I trust this information
will be of assistance to you.
Yours
sincerely,
Lesley East
Adviser (Taxation)
Attachment:
Medical
Aids and Appliances - Schedule 1
