Seniors Minister Judyth Watson said today that pensioner groups and non-profit charitable organisations would find life difficult under the proposed GST.
Dr Watson said the activities of many organisations like citizens' clubs, pensioner clubs and ethnic clubs would be viewed as commercial under GST.
It would mean:
· membership fees and the provision of goods would be subject to 15 per cent tax;
· groups would need to keep detailed records of GST paid on inputs, such as supplies;
· an escalation in administrative costs.
"The Opposition argues that non-commercial activities of such organisations would be untaxed," Dr Watson said.
"While this may be the case, these groups will still need to comply with the GST legislation and keep records.
"In addition, recreation costs like bus tours, the cost of sports equipment and clothing and entry to the cinema will all rise.
"And if food is sold through such an organisation, it would attract the 15 per cent GST.
"It also concerns me that Fightback makes no commitment to index pensions to the CPI and provides for superannuation fund earnings to be taxed at 20 per cent instead of the current 15 per cent."