FED: Rebate vote bad omen for tax debate say Democrats

AAP General News (Australia)
12-11-1998
FED: Rebate vote bad omen for tax debate say Democrats

CANBERRA, Dec 11 AAP - The Australian Democrats say they are now less optimistic about
changing the federal governments tax package after Independent Senator Brian Harradine voted
overnight to support the private health insurance rebate.

Democrats leader Meg Lees criticised the passage of the bill introducing the 30 per cent
non-means tested rebate from January 1, saying the amendments secured by Senator Harradine in
exchange for his support of it were inadequate.

"Despite Senator Harradines best intentions, he has been conned by experts," Senator Lees
said.

She and her party room colleagues had briefly discussed the implications of the vote for
the GST legislation which the Senate will consider next year.

"Perhaps all the work that were going to be doing in committee to get a fair and far more
reasonable tax package may be washed down the drain at the last minute with an arrangement
such as weve seen tonight," Senator Lees told reporters.

"Because we did work very hard to get a compromise on health, one that would have seen
those low-income families and individuals get some support but not given the money to wealthy
individuals.

"The package we have now on health is most unfair. The package we are facing on tax is
extremely unfair.

"But we have made the decision in the party room tonight to persevere. We are going to put
absolutely every effort we possibly can into the committee processes on tax and to proceed as
if we do have a chance of influencing government policy."

Asked whether she was less optimistic about being able to change the tax package she said:
"I am less optimistic after tonight."

AAP kaw/ss/jnb

KEYWORD: TAX LEES

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