Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

In follow-up to questions from Senator Fifield, I can confirm that the budget papers show that there is expected to be a $500 million reduction in GST revenue as a result of the Federal Court decision in KAP Motors. As I said yesterday, as all GST revenue is paid to the states and territories, this fall in revenue was offset by a fall in Commonwealth expenditure so that there is no net impact on the budget as a direct result of the KAP Motors decision. I would however, note, in order to ensure that the Senate is fully informed, there may in fact be some gain to Commonwealth revenue indirectly, as some of the refunds paid to car dealers will potentially need to be included in their income for income tax purposes.