Impact of the Governments Plan for a New Tax System on Rural and Remote Indigenous Communities Report Prepared by ATSIC January 1999 The Allen Consulting Group
Tabled paper 965
Tabled Papers for 8th Assembly 1997 - 2001; Tabled Papers; ParliamentNT
Tabled by Sydney Stirling
Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.
I xt p a c t o f a N e w T a x S y s t e m o n R u r a l a n d R e m o t e I n d i g e n o u s C o m m u n i t i e s 3. 2.4 Housing Housing is provided by community organisations that are directly funded to carry out this function. The survey finds that expenditure on rent and home loans accounts for between 6 to 19 per cent of household budgets. 3.2.5 Transport Because of their location, private motor vehicles play an important part in community life. Additionally, taxis play an important role for those without the resources or license to drive a motor vehicle. Stanley (1998) noted that in most communities private motor vehicles were purchased second-hand, often in relatively poor condition, and hence in constant need for maintenance. The survey shows that expenditure on transport accounts for between 3 to 10 per cent of household budgets. 3.2.6 Fuel and Power A further significant item of expenditure is fuel and power, which accounts for between 3 to 12 per cent of household budgets. 3.2.7 Alcoholic Beverages and Tobacco The other major item of household expenditure in rural and remote Indigenous communities is alcoholic beverages and tobacco products. Expenditure on these products accounts for between 11 and 24 per cent o f household budgets. 3.2.8 Savings Savings by households in rural and remote Indigenous communities is generally low and accounts for between -2 and 11 per cent of household budgets. 3.3 Conclusions An important result of the survey is the high proportion of the household budgets of rural and remote Indigenous communities that is spent on food, clothing and footwear on average between 40 and 50 per cent. This is o f great significance for the impact of the GST on the cost of living of rural and remote Indigenous communities. With the exception of some processed foods such as confectionary, biscuits and fruit juice/flavoured milk, these basic necessities o f life have previously been zero rated under the wholesale sales tax. The nature of the expenditure pattern of rural and remote Indigenous communities, and the application of the 10 p6r cent GST rate to food, clothing and footwear means that, other things being equal, they will be disproportionately impacted by the adoption, of the GST on the basis proposed. T in ; A l ien C o n s u l t i n g < in nip 9
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