Regardless of the merits of the scheme Smithy as advised many times on this forum by me, Rudd and Gillard Labor's buy now and pay later spending sprees, would be, in effect, future income tax increases.

This has now come to fruition.

The levy is required because the Govt since taking office has irresponsibly overspent by $271 Billion and climbing and has consistently failed to balance the budget despite an unpresendented mining boom.

Ironically the interest on this climbing debt (around at least $8 Billion per annum) would come close to covering the cost of the NDIS.

Now the minority that pays the majority of tax has to reach into its pocket yet again to pay the lion's share of Labor's fiscal irresponsibiliy and broken promises.  It is a sad and broken record.   

IMO the fairest option should a tax increase be required would be to increase the GST to cover not only this scheme but the whole health and education funding shortfalls.  This has not been mentioned by any side of politics to my knowledge, not even discussed.

Correct me if I'm wrong (I'm sure you will) but the medicare levy is paid by individual income taxpayers and not companies?

Personal income tax payers are a declining breed as a percentage of the population.  The baby boomers are retiring in droves and dropping off the list of income tax payers and the compounding burden of payment of Govt is falling upon fewer tax payers.

One of the reasons the GST (broad based tax) was introduced was due to the aging of the population issue and the problems this would have for the budget.

no matter what you think of the worth you do have to be gobsmacked by another example of Gillards idiotic political strategy thinking.  a TAX increase is hardly something to garner votes.  Thats another 5 seats for the coalition.  Perhaps the prediction of a 100 seat majority is not that out of contention?

Swagman wrote on May 1^st, 2013 at 11:22am:


but a GST increase that removed payroll tax and stamp duty and a few other govt charges and was effectively revenue neutral or near enough could increase economic activity in a small way as well as preserve govt revenues in the future. The GST was originally revenue neutral but has grown to be a notable supplier of funds

It would have to be revenue positive or else there'd be no point.

I favour a GST increase because the funding burden is spread.

IMO GST (increases / decreases) would be a more effective means of monetary policy anyway and should be used in lieu of interest rate movements.  The downside is the admin of such policy would be difficult as systems are geared for a fixed percentage but the IT gurus should be able to work that out in this day and age.

Politicians of both sides are scared schitless about even talking about increasing the GST so I expect it will not happen and the minority that pay the majority of tax will continue to get shafted....

your right. but at least this way we get to actually predetermine through proxy anyway, where the levy raised is spent.   I'd like to see a future LIb gov try and turn this one into just another form of gov revenue raising...... 

it's not just that they are poo scared of it though, it would be nigh on impossible to actually have alllt eh states agree to raising the GST percentage.  Political hari kari

Dooley wrote on May 1^st, 2013 at 3:07pm:


I think there should be no difference between companies and a private individual, tax rates should be the same for both, and any liability of the company should fall onto it's board of directors. I'm sick of hearing of companies going bust, subbies and suppliers going broke, and the directors get to start another company in another name from the luxury of his waterfront mansion.

Swagman wrote on May 1^st, 2013 at 4:19pm:


you will never cover everybody .. there is always an element that misses out ... Pre GST , if I quoted $3000 to paint a house (an example that does not reflect any deals I may or may not have made), I would offer a discount of $300 for cash (off the books), after GST was introduced, I still charged $3000 , but this time I would offer to forget the GST for a cash deal.  Thanks Howard for giving me an option to discounting. I got to pretend I was offering a discount, without really offering one. Increasing the GST only makes it more appealing to make more off the book deals.  And the people most likely to take advantage of the off the book deals are pros, pimps, drug dealers, hawkers, buskers, O/S tourists .