The replies we received from government ministers all indicated an acknowledgment of the importance of libraries but, as expected, did not give any undertakings about how libraries might be protected from adverse cost impacts. I also contacted key politicians for their views on the value of libraries to the community. Comments from the Prime Minister, the Leader of the Opposition and others on the importance of libraries are available through ALIAnet and in the FES material which all ALIA branches have received. I also wrote to twenty-seven senior librarians in all states and territories asking for their views on the possible impact of a GST on their library operations. Books, serials, computer hardware and software, other equipment and furnishings will attract the new tax.
Most libraries are already exempt from wholesale sales tax, customs duties and other trade-offs.
Under a GST overseas books and serials will be taxed upon entry into Australia, and libraries will have to file a return to be reimbursed. This will put a strain on those acquisitions budgets already suffering from the impact of currency devaluation. Services deserve special scrutiny. Commercial services, offered by non-profit libraries to supplement Government funding of their free services, will presumably attract increased costs and become less competitive. Outsourced services will attract the new tax.