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Publisher & Editor-in-Chief Leo Simpson, B.Bus., FAICD Editor Greg Swain, B.Sc.(Hons.) Technical Staff John Clarke, B.E.(Elec.) Robert Flynn Rick Walters Reader Services Ann Jenkinson Advertising Manager Brendon Sheridan Phone (03) 9720 9198 Mobile 0416 009 217 Regular Contributors Brendan Akhurst Garry Cratt, VK2YBX Julian Edgar, Dip.T.(Sec.), B.Ed John Hill Mike Sheriff, B.Sc, VK2YFK Ross Tester Philip Watson, MIREE, VK2ZPW Bob Young SILICON CHIP is published 12 times a year by Silicon Chip Publications Pty Ltd. A.C.N. 003 205 490. All material copyright ©. No part of this publication may be reproduced without the written consent of the publisher. Printing: Macquarie Print, Dubbo, NSW. Distribution: Network Distribution Company. Subscription rates: $54 per year in Australia. For overseas rates, see the subscription page in this issue. Editorial & advertising offices: Unit 34, 1-3 Jubilee Avenue, Warrie­ wood, NSW 2102. Postal address: PO Box 139, Collaroy Beach, NSW 2097. Phone (02) 9979 5644. Fax (02) 9979 6503. ISSN 1030-2662 PUBLISHER'S LETTER Make the Internet free of sales tax Everyone’s talking about the Internet and now the politi­cians and the Australian Tax Office are worried about it. They have realised that all those nasty tax-dodging companies might use it to avoid sales tax and that the budget could suffer bil­lions of dollars because of it. In fact, the Government has just announced an enquiry into that very subject: the Joint Committee of Public Accounts (JCPA). The JCPA will examine the administration of the Australian taxation system and assess the implications for Australia’s tax base. Currently, goods entering Australia are not subject to sales tax if they are below a $50 duty and sales tax free limit and the value of the goods is below $1000 for goods imported by post and below $250 if imported by other means. Apart from the taxation implications, the JCPA is also concerned about consumer protection because Australian laws are of little help to people purchasing faulty or incorrect goods from retailers overseas. Most would agree that this is a most important issue but I don’t think the pollies realise just how big it is. The inquiry was announced on August 7th and the closing date for submissions is Friday, September 19th, 1997! That’s hardly time enough for any person or organisation to make a well-prepared submission. It is typical of the Federal Government’s piecemeal approach to most issues and particularly taxation. Now that the High Court has struck down the States’ various invalid tax schemes and the Government has put together a hasty rescue package which looks pretty shaky, they must see that the whole taxation system is a sinking ship. The Internet is likely to be yet another revenue hole. One way or another, the Govern­ment will have to figure out effective ways of maintaining an adequate tax base. But there just might be a big opportunity here for Austra­lia to do something really adventurous as far as the Internet is concerned. Perhaps we should face the fact that collecting tax on Internet transactions will be an administrative nightmare and that sales tax is a mess anyway: just announce that the whole shebang will be tax free. Or make the tax rate very low. Imagine how commerce could blossom! It could provide a big boost to Australia’s aspirations to be a performer in the technology stakes. Think about it. But you don’t have much time to make submissions since they close on September 19th. For further information, contact Stephen Boyd, the JCPA Inquiry Secretary; phone (06) 277 4615; fax (06) 277 2220. WARNING! SILICON CHIP magazine regularly describes projects which employ a mains power supply or produce high voltage. All such projects should be considered dangerous or even lethal if not used safely. Readers are warned that high voltage wiring should be carried out according to the instructions in the articles. When working on these projects use extreme care to ensure that you do not accidentally come into contact with mains AC voltages or high voltage DC. If you are not confident about working with projects employing mains voltages or other high voltages, you are advised not to attempt work on them. Silicon Chip Publications Pty Ltd disclaims any liability for damages should anyone be killed or injured while working on a project or circuit described in any issue of SILICON CHIP magazine. Devices or circuits described in SILICON CHIP may be covered by patents. SILICON CHIP disclaims any liability for the infringement of such patents by the manufacturing or selling of any such equipment. SILICON CHIP also disclaims any liability for projects which are used in such a way as to infringe relevant government regulations and by-laws. Advertisers are warned that they are responsible for the content of all advertisements and that they must conform to the Trade Practices Act 1974 or as subsequently amended and to any governmental regulations which are applicable. 2  Silicon Chip