FED: Labor calls for GST compo for defence reserves

AAP General News (Australia)
02-10-2000
FED: Labor calls for GST compo for defence reserves

The federal opposition has urged the government to compensate defence reservists for
the GST by increasing their pay.

Labor defence spokesman STEPHEN MARTIN says there are currently no plans to compensate
reservists for the GST by increasing their pay which means they are effectively taking
a 10 per cent wage cut.

In a statement, Mr MARTIN says full-time forces would be compensated for the GST through
tax cuts.

He says reserve pay is tax free and thus, unlike other Australian employees, those
who choose to serve their country in a part-time capacity will not be compensated for
the effects of the GST through a tax cut.

AAP RTV mb/jg/msk/jn

KEYWORD: TAX RESERVES (CANBERRA)

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