13 May 1999

Bad Week Simon

After giving up on the Budget, the (WTG) Shadow Treasurer returned to desperate claims about tax reform legislation in the Parliament today.

Mr Crean told the House of Representatives that I stated on 11 March 1999 that "an insurance company introducing price rises before the GST applies would be breaking the law".

The transcript of what I said is attached. Any corporation claiming it has put up prices as a result of a tax change that does not apply would be engaging in misleading or deceptive conduct and liable under the Trade Practices Act 1974.

Where a contract spans 1 July 2000, cover relating only to that post-1 July 2000 period may be reflected in charges. That is, consumers can only be charged GST for that portion of a service that is delivered after the implementation of the New Tax System – July 1, 2000, once it is enacted.

After Question Time Mr Crean followed up with a false Press Release claiming that the Treasury had been advising companies to increase their premiums for services provided before GST comes into effect.

Mr Crean is fond of claiming all sorts of other people are ‘lying’ and did so again in his release today. He should look in a mirror.