Australian consumers have continued to enjoy higher-than-expected falls in the prices of TVs, videos, watches and hi-fi following cuts in Wholesale Sales Tax from 33 per cent to 22 per cent last July, with average prices falling by 7.7%, the Minister for Financial Services & Regulation, Joe Hockey, said today.
These price falls continue to exceed expected falls of 5 to 7 per cent.
The figures are contained in the ACCC's second quarterly report into the implementation of the new tax system, which the Minister released today.
During the first quarter of 2000, the ACCC also received 3374 complaints and 6156 inquiries about price exploitation and the New Tax System. The majority of the complaints received have concerned general insurance (17%) and retail industries (13%).
The ACCC's report also analysed key ABS price indexes such as the Consumer Price Index and building, manufacturing and import wholesale price indexes.
This analysis confirmed there is little evidence to support claims of general anticipatory price increases in the lead-up to the introduction of the GST, the Minister said.
In the first quarter of 2000, the ACCC's major enforcement actions were:
- Zurich Australian Insurance Ltd agreeing to refund approximately $50,000 to 348 overcharged policy holders;
- the issuing against nine general insurers of section 75AY notices;
- the removal of dual price tickets from Big W stores Australia wide and other retailers stores;
- investigations against retailers as a result of the price monitoring of goods following the reduction in the WST; and
- the launching of an ultimately successful Federal Court action alleging misleading and deceptive conduct against Meriton Apartments Pty Ltd.
The ACCC report is available on www.joehockey.com
23 May 2000
Media contact: Matthew Abbott, Minister's office, 02 6277 7230, 0413 076 213
Key Events January March 2000
| January 2000 | Public compliance commitments guide published |
| January - March 2000 | 3374 complaints and 6156 inquiries received by the Commission |
| January March 2000 | 412 complaints investigated |
| January March 2000 | 41 companies commit to entering a Public Commitment of Compliance |
| 30 January 2000 | Section 75AY Notice sent to nine general insurance companies |
| 3 February 2000 | Forum on price display with retailers, consumers and State Fair Trading agencies |
| 16 February 2000 | Big W withdraws dual price tickets after ACCC intervention |
| 29 February 2000 | Zurich refunds $50,000 after GST hotline complaint |
| 9 March 2000 | Release of the varied GST Price Exploitation guidelines |
| 9 March 2000 | ACCC GST website launched |
| 20 March 2000 | GST Pricing hotline expanded with increasing call volume |
| 29 March 2000 | Revised GST Price Exploitation guidelines gazetted |