Hands off GST on food, farmers urge government

Date
    June 26, 2015
    The Age


Farmers have urged federal politicians to keep the GST off fresh food, in an overwhelming vote at the annual conference of the Victorian Farmers Federation held in Bendigo.

The stance was adopted as official policy by the VFF, after it was proposed by Sunraysia horticulturalist Bill McClumpha, who spoke passionately against extending the GST to fresh food.


"A GST on food would be disastrous for rural producers, horticulture in particular." he said. "There's nothing in it for us. You're going to see your returns diminish as the supermarkets demand a discount to protect their returns, you're going to see a shift to imports. I'm not sure about you, but there are some things which we cannot countenance." he said.   :(

Rien Silverstein​, from the Goulburn Valley, also spoke against any extension of the GST to fresh food. "Extending the GST on what we [Victorian farmers] produce is a totally ridiculous way for the government to make more money," she said.


"Fresh fruit and vegies are the food that we need to promote good health for everybody," she said. "If we put the GST on food, the health of the nation will go down."   :(

But separately, the Victorian Farmers Federation passed a policy saying it would support an increase in the GST, provided two special qualifications about the use of the extra revenue were met. The VFF would support a higher GST provided the extra revenue was; offered to the states on condition they cut payroll tax and stamp duty, and; offered to local government on condition they cut property rates.

In other developments at the meeting;

    Farmers condemned the quality of telecommunications services in the bush, with a survey of farmers reporting they encountered internet download speeds that were one tenth of their city cousins'.   :(

    Farmers passed a resolution calling on the federal government and Telstra "to urgently upgrade the fixed-wire underground network that links the NBN node to rural homes."
    Victorian Agriculture Minister Jaala Pulford launched a $500,000 Young Farmer Scholarships Program, which provides scholarships of up to $10,000.

In her keynote address Ms Pulford painted a bright future for Victorian agriculture. "Agriculture is central to the Victorian economy and we want to make it central to our plans to grow the state, 140,000 people [employed], $11.6 billion dollars [of annual production]. It's a big and essential part of the Victorian story, but one that we believe is poised to grow and to grow dramatically."

Ms Pulford also told the meeting the government was acting to tackle the threats posed by Queensland Fruit Fly, had plans to grow the wine industry and "we will be building [the] Murray Basin Rail" project.

"What I would like to assure you is that I will be a champion for this sector [agriculture] across government," she said.

Quote:

the Victorian Farmers Federation passed a policy saying it would support an increase in the GST, provided two special qualifications about the use of the extra revenue were met. The VFF would support a higher GST provided the extra revenue was ... offered to local government on condition they cut property rates.

This is difficult because the Federal parliament has no power to legislate for local governments directly.

why ??? Denmark pay 25% on EVERYTHING.. nothing is left off the list...we pay 10% on about half of what we buy and whinge and whinge and whinge..about it..

they sky didnt fall when GST was brought in.. despite the predictions..and the whingeing.

"Fresh fruit and vegies are the food that we need to promote good health for everybody," she said. "If we put the GST on food, the health of the nation will go down."   :(

wrote on Jun 27^th, 2015 at 9:03am:

"Fresh fruit and vegies are the food that we need to promote good health for everybody," she said. "If we put the GST on food, the health of the nation will go down."   :(

what drivel.  does the 'health fo the nation' go down every time there is a price increase in food?  eg 4 times a YEAR?

We should exempt fresh food from the GST....However when I say fresh food I mean food that is at less than a month old depending on the products shelf life....That should give our farmers an advantage with the Supermarkets over cheaper imports and give consumers real fresh food!!!

:-? :-? :-?

longweekend58 wrote on Jun 27^th, 2015 at 9:16am:

wrote on Jun 27th, 2015 at 9:03am: "Fresh fruit and vegies are the food that we need to promote good health for everybody," she said. "If we put the GST on food, the health of the nation will go down."   :( what drivel.  does the 'health fo the nation' go down every time there is a price increase in food?  eg 4 times a YEAR?

Evidence, please?

Current cost of meat = lower purchase of meat by pensioners etc.....

Cutting costs on food as the unemployed are compelled to do has long-term and short term effects on health....

http://www.bmj.com/content/339/bmj.b2403

philperth2010 wrote on Jun 27^th, 2015 at 9:33am:

We should exempt fresh food from the GST....However when I say fresh food I mean food that is at less than a month old depending on the products shelf life....That should give our farmers an advantage with the Supermarkets over cheaper imports and give consumers real fresh food!!! :-? :-? :-?

Excellent thought, Phil, increasing GST on fresh food etc wil only lead to more buying of cheaper imports and will thus raise a lot less than the vultures thin, while cutting down one of the props that sustain Australia - farming.  Add to that rising costs of living followed by greater upward pressure on incomes and where are we?  Competing with India daily wage about $10.20 or so, again, are we?

Short-sighted idiots.

All these clowns ever see is some mythical bottom line that they can't even see in reality.... it's all guesswork, same as 'budgets' are, and if it doesn't work - well - just leave it in place and find another way to squeeze some blood from a stone...

And we pay these clowns to run the show for us.

When The Grappler Party takes power, one of our first priorities will be a total assembly of all taxes and excises into one list and what they do and do not bring in, along with their operating costs.

We will then determine if it is in the best interests of the economy to abolish the very vast majority of taxes and excises and replace it with one, or a very few.

I estimate such a list could be assembled by dedicated public servants in a week... and consideration of taxes and excises could begin within the first 1-2 months of Grappler governance.

We may end up with income tax and a GST without all the extra taxes.. .. but that is open to consideration and review