Clarification of payments to the taxi industry

We would like to inform members of the actions taken by the Taxi Council when seeking clarification on the payments to the industry.

Taxi Council wrote to the Minister’s Office on three occasions asking for clarification on whether they will be providing the payment as “ex-gratia”. To date we have had no reply nor any further assurances that this will be the case.

In a letter dated 27th April 2017 to the Taxi Council from Minister Mullighan, the Minister wrote:-

All payments will be one lump sum, and it is my intention to request that the Treasurer classify these as ex-gratia payments. Please note, however, that this may or may not influence the determination of the Australian Taxation Office with regard to the impact on taxable income, which operates under Federal law.

 We were hoping to get some assurances that this government would be providing additional paperwork which stated the payment was “ex-gratia” so that we could seek further information and advice for members from our Lawyers, Accountant and the Australian Taxation Office.

We do not want you to wait for further correspondence from the Taxi Council as we understand that some of the members are anxious about what they should do. We suggest, therefore, that you seek advice from your accountant on any tax implications which would be relative to your own situation and then decide whether you should apply for the payment now.

We are disappointed that the assurances have not been forthcoming, but we have been told that they “are looking into it and will get back to us”. Answers to questions for the lessees and even the way the application is worded are still outstanding so again we suggest that rather than have you wait any longer, you speak to your accountant.

You may also wish to contact the Department of Planning, Transport and Infrastructure on 1300 623 597 or by email at DPTI.P2Preforms@sa.gov.au

We will contact you again once we have more information but if you feel that you should apply now the Taxi Council suggests that you do so.

Kind Regards

Cheryle Conduit

State Secretary

Taxi Council SA

Tel: 08 8301 8404 Fax: 08 8293 6300

email: cheryle@taxicouncilsa.com.au

www.taxicouncilsa.com.au

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