NSW: National tourism industry welcomes zero tax proposal

AAP General News (Australia)
04-19-1999
NSW: National tourism industry welcomes zero tax proposal

By Karen Michelmore

SYDNEY, April 19 AAP - Australia's tourism industry today welcomed the Senate tax
committee's recommendation to make offshore tourism packages GST-free.

The industry's peak body, the Tourism Council of Australia (TCA), and the Tourism Task
Force (TTF), say taxing the packages bought overseas by foreigners could cost Australia's
tourism industry thousands of jobs.

"We are quite happy for tourists to be taxed once they are here, but taxing them before-
hand will be a deterrent in them coming here," TTF spokesman Matthew Hingerty said.

TTF Chief Executive Christopher Brown said the Senate tax committee had recognised a GST
without amendments would leave the tourism industry worse off.

"Tourism is Australia's largest export industry and employs more than one million people
throughout Australia, particularly in rural and regional areas in North Queensland and
Tasmania," Mr Brown said.

Mr Hingerty was confident the Government would "see the inherent sense in the argument" and
make the recommended amendments.

The TTF has also made a series of policy measures to alleviate the impact of the GST on the
industry, including zero-rating long-haul domestic travel and financial assistance for
regional areas.

"Seventy per cent of the tourism business comes from the domestic sector," the spokesman
said.

"More Australians will go off shore to places like Bali for their holidays, because it will
be cheaper," he said.

The TCA also welcomed the recommendations and the support of the Australian Democrats in
making the changes.

TCA managing director Phil Young said the Democrats support for the zero-rating would bring
tourism into line with other exporters.

"Tourism is Australia's second largest exporter contributing more than $16 billion last
year and should be treated with parity under the federal government's proposed tax package,"
Mr Young said in a statement.

The tourism industry supported comprehensive tax reform, but sought to fine-tune some
elements of the package to maintain its international competitiveness, Mr Young said.

"However, the tourism industry supports the full taxation of food to ensure the price
impact on restaurants is not compounded by falls in business," he said.

AAP km/bm

KEYWORD: TAX TOURISM

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