Re: Affect of GST on Rail.

[David McLoughlin <davemcl@AXE*THISiprolink.co.nz>]

Maurie Daly wrote:
 
> Noticed recently whilst looking at ARTCs track access charges that all the
> current charges dont include GST.
> I presume that this means that after 1 July all track access charges will
> include GST and therefore rise by 10%.
> Given that Rails competitors , namely road dont pay an equivalant road usage
> charge,this would surely mean that rails competetiveness will fall further
> behind again.
> Or am I missing something.?


How does road transport pay its share of road costs in Australia?

Here in NZ, where GST was invented, road transport pays a
weight-distance based "road user charge" which is calculated from a
meter on the truck/bus axle (a hubodometer it is called).

GST applies on top of the road user charge. It also applies on top of
fuel costs.

There is no track access charge here as the stupid government flogged
our profitable rail system off train, track and carriage so Tranzrail
has exclusive access to the track  (the track beds remain in state
ownership but at a peppercorn rental of $1 a year in perpetuity).
However Tranzrail has to pay the full cost of track upkeep itself.
Trucks here still do not pay anything like the full cost of the damage
they do to the roads. That is born by private motorists (whose cars do
little damage to the roads) who pay a hefty excise tax on petrol (about
half the cost of petrol here of 97c a litre for unleaded 91).

GST is a value-added tax where each link in the sale chain deducts the
value of GST on its purchases and pays it on its sales, with the full
tax in effect being only paid by the (retail) end user.

David McLoughlin
Auckland New Zealand