13 June 2001

ACCC Confirms No GST Price Exploitation

The Minister for Financial Services & Regulation, Joe Hockey, today released the 6th Section 75AZ Report Quarterly Price Report on Price Exploitation from the ACCC.

"This report shows that nine months since the introduction of the New Tax System, there is clear evidence that price changes were generally consistent with the level forecast by the ACCC before the introduction of the GST," the Minister said.

"Price changes now substantially relate to commercial considerations not because of the New Tax System.

"I am pleased to note that the ACCC is continuing to monitor and take actions where necessary to protect consumers during the introduction of the New Tax System," the Minister said.

The ACCC's powers under Part VB of the Trade Practices Act continue until 30 June 2002.

"It is important to recognise that events, such as the devaluation of the exchange rate and the rise in the international price of oil, have also had unexpected impacts on prices.

"Seasonal and other influences have affected the prices of some food groups and the ACCC is continuing to give special attention to the prices of motor vehicle repairs and alcohol."

The ACCC's Quarterly Report is available at www.joehockey.com