Fed: Cabinet rejects plans to scrap Ansett ticket levy =2

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Fed: Cabinet rejects plans to scrap Ansett ticket levy =2

The federal government imposed the $10 ticket levy shortly after the airline's collapsein September 2001 to recoup money it had paid in workers' entitlements.

The government has already collected more than $200 million from the levy, but a courtcase means workers' entitlements remain in limbo.

Cabinet today rejected proposals to axe the tax or suspend it while the court case is pending.

"Cabinet's position is to cease collection of the Ansett levy as soon as possible,"

Mr Anderson's spokesman said.

"However, further uncertainty has been created by the Ansett ground staff superannuationfund trustee's decision to appeal the Federal Court ruling."

The spokesman said Mr Anderson was hopeful of a quick resolution to the case, but itis believed to be at least six months away.

Ansett employees' entitlements remain in limbo after the trustees of a staff superannuationfund last week appealed against a ruling that would have cleared the way for a further$200 million in entitlements to be distributed.

Ansett's administrators have applied to the court to have the matter heard within thenext six months, leaving the Ansett levy in place for at least that long.

Earlier, Treasurer Peter Costello said the levy would remain in place until all workers'entitlements were paid.

"The levy was put in place to guarantee entitlements to Ansett workers and once thoseentitlements have been paid then the levy will come off," he said.

AAP sal/sb/apm/jlw

KEYWORD: ANSETT LEVY 2 CANBERRA