Peter Costello

Media Transcripts

GST/Woolworths, Reconciliation, compliance costs

 

Transcript No. 2000/20

TRANSCRIPT OF
The Hon Peter Costello MP
TREASURER

Doorstop
Monday, 28 February 2000
9.45 am

SUBJECT: GST/Woolworths, Reconciliation, compliance costs

JOURNALIST:

Treasurer, good morning.

TREASURER:

Good morning, how are you?

JOURNALIST:

Does Woolworths admission that clothes will initially go up by a full 10 per cent damage your indication that that shouldn’t be the case?

TREASURER:

Well, I welcome the fact that Woolworths have today announced price changes as a result of GST, and they say that a basket of goods in their supermarket selling for $100 will sell for $100.80. So that’s, what is that, 0.8 per cent change. This is the most definitive and authoritative survey which has yet been done by one of Australia’s major retailers. And they said, that in their price stores this is their figures, in Woolworths price stores, if you’re paying $100 in a supermarket today, they think under GST you’ll be paying $100.80, with the possibility of further price falls when transport cost reductions are factored in. Now that is, of course, the most definitive and authoritative statement yet from an actual retailer as to what that retailer intends to charge post 1 July. And what they’re talking about, is if you’re paying $100 now, the bill could go to $100.80. A change of 80 cents in $100. Now, when you add in together, the fact that for a family with two children on a salary of say $40,000 they’ll have additional spending power of $47 a week, that is, additional money in their pockets to spend of $47 a week extra, on a Woolworths price increase of 80 cents per $100, that is magnificent benefits for families and . . .

JOURNALIST:

(inaudible) they’re still saying a full 10 per cent initially . . .

TREASURER:

Well, well hang on. I think Labor now has egg all over their face. Absolute egg all over their face. I think, you know, for Mr Crean, goes out and starts attacking Woolworths today, I don’t, I don’t think I’ve seen a politician less controlled than to, somebody to attack a major retailer. And why was he attacking a major retailer? Attacking a major retailer because the retailer had good news. $100 went to $100.80, that’s good news. Now the Labor Party, of course, has pledged to keep GST. And let’s ask the Labor Party this question – are they going to give us a pledge today to take GST off clothes? Is that their pledge, have they said that? No, they’re just out there complaining about a tax that they intend to keep. And what they’re really worried about today is good news. $100 goes to $100.80, and that’s not me talking, that’s not the Australian Competition and Consumer Commission talking, that’s Woolworths, Mr Corbett, who’s done an extensive study, and he says, in his stores, if you’re paying $100 today, you’ll pay $100.80 with the possibility of further price falls. And I welcome the fact that Woolworths has been so responsible in its announcement this morning.

JOURNALIST:

The Opposition says, the Prime Minister and the Government has an attitude problem when it comes to Aboriginal reconciliation. Are you committed to reconciliation?

TREASURER:

Yes, of course we are, and we’ve said that we will work hard on reconciliation.

JOURNALIST:

There’s been a back down today . . .

TREASURER:

There’s no question of an attitude . . .

JOURNALIST:

. . . (inaudible).

TREASURER:

There is no question of an attitude problem. The Government has been working hard on reconciliation and we hope that it will be accomplished.

JOURNALIST:

But there’s been no deadline set, or the deadline’s now been broken.

TREASURER:

Well, you ask me, does the Government have an attitude problem? The answer is no, the Government does not have an attitude problem. The Government is working on reconciliation and I hope it will come to a productive conclusion. Thanks.

JOURNALIST:

Are business compliance costs for the GST going to be higher than originally forecast?

TREASURER:

Well, look I saw all of these sort of discussions in the Financial Review which was based on Canada as far as I could tell, so I think the Fin will have to do a bit better tomorrow. Thanks.

28 Feb 2000

View more media transcripts …

Latest News

Paris Diary

Peter Costello Paris Diary

Read more …

PPI - Rising Role of Sovereign Wealth Funds

Peter Costello Rising Role of Sovereign Funds Speech

Read more …

The Hole Truth

Peter Costello in the Daily Telegraph

Read more …

Videos

Video Screenshot

Watch videos …