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GST & Rail Heritage Groups - A Death Knell??



Whilst the debate on the GST and Rail has mainly focused on its effects on
the Mainstream Rail Operators, the effect on Volunteer Rail Heritage
operators has not been discussed.

Firstly they will be responsible for collecting the GST, for which they will
have to increase their fares.  If the fare for a long trip like the NSWRTM
runs is $1000, then $100 will be added to the ticket price.  For a group of
80, this an $8000 windfall to the Commonwealth Government, courtesy of a
volunteer group.

If a volunteer group has sold $11,000(with GST already included) worth of
tickets on a series of weekend shuttles, even if there has been a loss,
$1000 goes to the Commonwealth.

Don't forget the GST on rail souveniers, and refreshments sold, are now the
responsibilty of the Volunteer Groups

It would be nice if this tax was then redirected into rail preservation.

If they hire their trains out to another organisation who is organising the
charter selling the tickets, and making a profit from the trip, will this
separate organisation then be responsible for GST collection?

Granted the price of diesel will go down, but for coal will it do likewise.
There will be a GST on the cartage of the coal to their individual depots.
Water supply will have an added GST to it.

Do all volunteer rail preservation groups in Australia then receive the
necessary money to set up for the calculation and payment of the GST, and
the staff to do it.  Even if they are entilted to a rebate on some services,
who will get time to do it.

The talk of payroll tax elimination means nothing to most volunteer groups.

Mandatory costs like Transport Accident & Public liabilty Insurance
Volunteer Workers Insurance, Council rates, and the supply of gas, water and
electricity will rise by 10%.

This tax has a far great implication for Australian Volunteer Rail
Preservation Groups than for the profit making(or those set up to do so)
Rail operators.

It may be a death knell.