Abbott: GST is back on the table

Date
    May 18, 2013


Tony Abbott has revealed the goods and services tax could be included in a full review of the tax system if the Coalition is elected, raising the prospect the 10 per cent rate could be lifted or the tax broadened to include food, education and health services.      

The decision to review the controversial tax, which Labor ducked with its Henry tax review in 2008, will likely invite a ferocious scare campaign from the government in the run-up to the September 14 election.

Within hours of Mr Abbott revealing the scope of his proposed taxation white paper, the government went on the warpath, with Prime Minister Julia Gillard warning of an expanded GST and ''all of the cost of living problems that that would give Australian families''.

But Mr Abbott vowed any changes to the taxation system, including the GST, would be introduced only after they were taken to voters.


''Anything we might do arising from our white paper we would seek a mandate for, not at this election but at the election after,'' Mr Abbott told ABC radio.

The combined impact of exemptions from the GST negotiated at the time of its introduction is $22.85 billion a year in forgone revenue. The exemptions also make the tax more complex to administer, although they do make it less painful, especially for those on lower incomes.

Faced with a difficult fiscal situation made worse by unfunded promises, Mr Abbott has hosed down expectations of lower business taxes under a Coalition government to offset his paid parental leave scheme.

A previously promised 1.5 percentage point cut in company tax at the last election is now merely a pledge to ''strive for a modest company tax cut'' in the first term.

Undertaking his own version of the budget hard-sell after his official reply speech on Thursday evening, the Opposition Leader reaffirmed his commitment to slow the ramp-up to the 12 per cent superannuation guarantee by two years, and to commission a comprehensive white paper on taxation.      

''There will be a widespread chance to contribute,'' he said of the public-consultation approach to be followed. ''We certainly don't want to squib this process the way the government did with the Henry review.''

Asked subsequently to clarify if the GST was on the table or not, he said: ''We will have a comprehensive debate about tax reform [but] we haven't even won a first term, let alone a second term.

''Who knows what people might put up to us - then we will have a white paper, informed by the best expertise the Commonwealth can muster in the wake of that consultation, and if there were to be any changes in the second term, we'll seek a mandate for them.''

The government also argued the proposed two-year delay in the delivery of 12 per cent superannuation under a Coalition government was merely a forerunner to a complete abandonment of the shift up from 9 per cent, due to begin from this July.      

It says the effect of the slowdown would reduce the average 30-year-old worker's retirement pool by $20,000, but staying with the 9 per cent rate would cost the same worker $127,000.

The burgeoning hip-pocket debate comes as a new survey found Mr Abbott had surpassed Ms Gillard in overall mentions across electronic media as he casts off his ''Dr No'' tag by backing government decisions.

A nationwide analysis of talk-back radio and the micro-blog site Twitter has found there is a renewed public interest in policy since the election date was announced in February.

The iSentia survey suggests Mr Abbott's decision to fully back the national disability insurance scheme DisabilityCare, including an increase to the Medicare levy to help fund it, may have impressed voters.

John Chalmers, iSentia's group communications manager, said the Opposition Leader now appears to be getting as much credit for the landmark socio-economic program as the government.

''Overall, it seems likely that the NDIS is playing just as well for Abbott as Gillard … and any policy it makes from now on, unless it's strongly opposed by Abbott, will be seen just as much his as hers,'' Mr Chalmers told Fairfax Media.

Read more: http://www.smh.com.au/opinion/political-news/abbott-gst-is-back-on-the-table-20130517-2js0b.html#ixzz2TaNMFJ2K

crook, do you just sit around your house all day thinking up questions for "mr abbott' 

its a saturday, go and earn some penalty rates at time and a half.

you might as well make the most of it for the next few months

RightSadFred wrote on May 18^th, 2013 at 7:13am:


the theory of broad-based taxes is to simply taxation as pure revenue raising as opposed to the ALP trying to tax everything.

I think we have a winner ????

A tax is revenue raising - who would have thought ????

Defending the GST - a tax on everything against other taxes because they are taxes on everything ???

I suspect that fred meant something by this comment but I have no idea about what it was.

RightSadFred wrote on May 18^th, 2013 at 7:13am:



I have a problem with the practical side and a government would need a solid argument, not just a panic measure in playing with the GST rate like a potential future ALP government would do if the idea was toyed around.

You know that the liberals have been the only group to talk about raising the GST? They already raised it by 10% you understand.

aquascoot

They guy does not bother me at all, once I think your a retarded moron like Flannery I know everything you say is garbage.

Your wasting emotion on grubs like these.

Dnarever wrote on May 18^th, 2013 at 7:54am:


Now your just being a plain grub, if your going quote me do it properly.

The GST is already on Food.

adelcrow wrote on May 18^th, 2013 at 8:18am:



Rewriting history again crow?


In 1985, Keating championed the introduction of a broad-based consumption tax, similar to the goods and services tax (GST) of the Howard government.[11][12] During the 1984 election campaign, Hawke had promised a policy paper on taxation reform to be discussed with all stakeholders at a tax summit. Three options - A, B and C - were presented in the Draft White Paper, with Keating and his Treasury colleagues fiercely advocating for Option C, which included a consumption tax of 15% on goods and services along with reductions in personal and company income tax, a fringe benefits tax and a capital gains tax. Although Keating was able to win the support of a reluctant cabinet, in the face of opposition from the public, the welfare lobby, the ACTU, and the business community, Hawke intervened to drop the consumption tax. Many of the remainder of the reforms were adopted in the September 1985 tax reform package, but the loss of the consumption tax was a bitter defeat for Keating. However, he joked about it at the press conference saying, "It's a bit like Ben Hur. We've crossed the line with one wheel off, but we have crossed the line."

http://en.wikipedia.org/wiki/Paul_Keating

In an interview with News Ltd, Mr Hawke, who was PM from 1983 to 1991, said he had no regrets about killing off Mr Keating's preferred tax plan, a move many view as a turning point in their relationship that later soured.
But he said the level of today's consumption tax - the 10 per cent GST - "should be open for discussion".

http://www.news.com.au/national-news/cabinet-papers-released-reveal-hawke-keatin...