The accommodation industry has welcomed Tuesday's Federal Budget initiatives, according to Hotel Motel Accommodation Association (HMAA) Chairman, Mr Harry Korpetutuncu.
"While tourism-specific initiatives are thin on the ground, the Budget contains some positive measures
including:
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Personal income tax relief, rewarding those who work hard, which should contribute to easing future wage pressures in the accommodation sector;
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20,000 extra skilled migration places and a new visa to allow overseas nationals to undertake full-fee apprenticeships; and
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$20 million in extra funding for Commonwealth Games security.
"Transport infrastructure spending on major highways, such as the Geelong, Pakenham, Albury-Wodonga and Deer Park bypasses, will improve ease of travel, leading to a higher quality tourism experience.
"We are disappointed that the Government has not repealed its attempts to extend the GST to tourism exports, a measure that contradicts completely the GST exemption applying to other exports.
"As argued to the Senate Economics Committee (which is examining the proposed legislation) by the HMAA, the proposed changes will require every foreign tour operator in any country that sells Australian tourism product to fill out a Business Activity Statement and remit GST to the Australian Taxation Office.
"Consequently, the main impact of this Bill would be to discourage foreign tour operators from offering Australian tour packages for sale overseas. These operators will simply substitute alternative destinations that do not have these higher compliance and transaction costs.
In fact, it appears that Australia would be the only country in the world demanding such extra territorial GST compliance", says Mr Korpetutuncu.
Background - What is the HMAA
The Hotel Motel Accommodation Alliance (HMAA) is the peak policy council for the Victorian accommodation industry. Harry Korpetutuncu chairs the Council, which represents small, medium and large industry operators, providing one united industry voice.
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