Second Reading SpeechSenator Kemp (Victoria - Minister for the Arts and Sport)
That this bill be now read a second time.
I seek leave to have the second reading speech incorporated in Hansard.
The speech read as follows-
Tax Laws Amendment (Long-term Non-reviewable Contracts) Bill 2004
This Bill amends the A New Tax System (Goods and Services Tax Transition) Act 1999.
It provides for the treatment, for GST purposes, of long-term non-reviewable contracts after the GST-free transition period ends on 1 July 2005.
Pre-existing contracts that have not had a review opportunity before 1 July 2005 will become subject to GST from that date. The amendments put in place a mechanism to negotiate a pricing adjustment with the recipient of the supplies to take into account the impact of the New Tax System changes.
As a result of the negotiation, the parties may adjust the price, if necessary through arbitration. Alternatively, the recipient of the supply may elect to pay the GST or may become liable for it if he or she does not accept the result of the arbitration.
Three Imposition Bills are also being introduced as part of this package to allow the imposition of GST on recipients in certain circumstances.
Full details of the measures in this Bill are contained in the explanatory memorandum.
I commend this Bill.
Ordered that further consideration of the second reading of these bills be adjourned to the first day of the next period of sittings, in accordance with standing order 111.