Re: GST on city rail train Tickets

[Vaughan Williams <ender2000@my-deja.com>]

> > I believe the GST will apply on train tickets, Does anybody know how
> > they are proposing to bring it in? A example of this would be a
weekly
> > ticket purchased just before the GST start date. Does city rail only
> > charge GST of the days which GST applies?

GST will indeed apply to train tickets as well as bus/tram/ferry
tickets.

For a periodical ticket the operator would normally be expected to
charge GST for the portion of the ticket applicable after 1 july.

The problem with this is that, at least in Melbourne and I believe in
Sydney as well, you can *buy* tickets on one day and *use* them on
another - sometimes, several weeks or months later.

For tickets such as the 10-trip, the operator would have to estimate
how many are likely to be used post 1 july. Any such estimate will be
arbitrary and will often mean that people pay GST before it is actually
in force.

Some people may have realised that if you buy several tickets now you
will be able to avoid paying the GST later. I assume this will not
remain possible for much longer.

I do wonder though how long it will take the Metcard bureaucracy to get
their act together and start charging GST. We might not end up paying
it until later in the year, especially if those machines can't handle
it.

PTUA estimates fares will rise by 6 - 8%, but the cost of driving will
fall at the same time leading to a 10% relative decline in the price
competitiveness of public transport. This in turn will cause patronage
to fall by around 5%, which is likely to prompt operators to cut the
services. This leads to a further fall in patronage.

If you are annoyed at the Democrats for reneging on their commitment to
exempt public transport from the GST, please contact the Democrat
Senator in your state and let them know how grateful you are that you
pay 10% more, every time you catch a train. Their contact details are
at www.democrats.org.au/people

:)
Vaughan


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