FED: Democrats say charfities to be mostly better off

AAP General News (Australia)
12-10-1999
FED: Democrats say charfities to be mostly better off

The Australian Democrats have backed treasurer PETER COSTELLO's prediction that some
charities will actually be better off under the GST deal finalised yesterday.

Democrats leader MEG LEES says there could be a few more anomalies, but there'll be
no more major problems in the way the GST is applied to charities.

She's told ABC radio that charities can choose to be zero-rated, which means they don't
have to charge the GST but they get back their inputs.

Or charities with a turnover under $100,000 can stay out of the system altogether -
but they don't get their inputs back.

Senator LEES says charities can move between the two options, and can have some parts
of their operations zero-rated, and other parts exempted.

Under the deal announced by Mr COSTELLO and Senator LEES yesterday, the government
will give an extra $65 million to charities to make up for any GST charges.

Opposition treasury spokesman SIMON CREAN says there should be an independent inquiry
into imposing GST on charities - which he says the government promised would be completely
GST-free.

AAP RTV mb/kbw/rp

KEYWORD: TAX (CANBERRA)

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