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. Inter-library loans may do so. Service delivery will be affected by changes to tax rates on fuel and transport, telecommunications and infrastructure. Rural and remote regions are especially vulnerable.