GST to push Telstra price increases higher

The Federal Opposition has warned that Telstra could increase the amount charged for phone line rentals by more than $2.26 due to the GST. This follows Telstra's announcement last week that the cost of line rentals will rise to $17.50 from February 1. However, the Opposition believes that inflation brought about by the GST would enable Telstra to charge more than intended. Mr Stephen Smith, Labor communications spokesman, said an increase in the consumer price index (CPI) is a likely indication that Telstra prices could also increase beyond the rises stipulated last week.

‘Telstra could lift charges again', The Sydney Morning Herald, 29/01/01, p 35.