Rail & the GST.

[mauried@commslab.gov.au (Maurie Daly)]

Whilst most people are aware of the Diesel Fuel Excise debate and the GST 
I have been wondering about the other costs which Rail will have to pay.
Obviously locos and rolling stock will cost 10% more which is bad , but not a 
common cost as railways dont buy locos every day .
The area which possibly will be bad is the service area and the costs of 
services which are currently not taxed.
ie Will NRC now have to pay Goninans 10% more to have its fleet of locos 
maintained,(Maintenance is a service).
Also will Track Access Charges rise by 10% , almost certainly as Track Access 
charges are for the provision of a service.
Just about all areas of Rail maintenance will rise , not only the costs of the 
materials which rise by 10% but also the costs of providing the maintenance 
service, also 10%.

In short , not a good future for Rail.

MD