Presented by Robert Clark MP		www.robertclark.net

Hospitals will be GST free

The Health Minister, Rob Knowles, has confirmed that services and standards in Victoria’s public hospitals will not be affected by the Federal Government’s Goods and Services Tax (GST).

He said that, in fact, hospitals would benefit financially by some reduction in embedded sales tax on the costs of products that they purchase.

"The Federal Government has made it plain and clear that health care is zero-rated under the GST," Mr Knowles said.

"Both the Victorian Government and the Commonwealth are committed to ensuring that the GST in no way reduces health services to the community.

"There may be some level of administrative cost involved with hospitals in ensuring that they comply with the provisions of the GST, but this is also being addressed.

"We will have a better understanding of compliance costs in the near future as we work closely with the Commonwealth. The GST does not come into effect until July 2000, and Victoria will factor any compliance costs into hospital funding levels in next year’s State Budget," he said.

Mr Knowles was responding to an Opposition claim that the GST was would hit hospitals. He said that the Catholic Healthcare Association advice on which Labor based its claims was prepared prior to the final changes to the GST.

(News Release, Office of the Minister for Health and Aged Care, July 2, 1999)