What are the odds on a GST rise?

Date
    August 12, 2013


Be prepared, a rise in the GST is on the cards.

When Joe Hockey, the man likely to become the next Federal Treasurer, says that all options will be considered as part of achieving a revamped tax system, that screams a message, "negotiations are open to increase the GST".      

Of course an increase in the billions of dollars the Goods and Services Tax already raises, is bound to draw flak from the electorate.

Nobody wants to pay more tax.


But all politicians know that immediately following an election is the best time to serve the electorate a dose of nasty medicine.      

The Barnett government has recently proved my point.

To facilitate an increase all states, the Northern Territory and the federal government must vote for the change.

Australian voters, state and federal, have installed conservative governments in the Northern Territory, Western Australia, New South Wales and Queensland.

In South Australia the Labor government is considered highly likely to lose office at the next election due early in 2014.

In Tasmania, the Labor government's finances are in desperate need of an injection of funds to stimulate that states sluggish economy. If the size of the GST cake is increased, an offer of extra funding to the island state would be a compelling incentive for that state to vote for an increase.

Western Australian Premier Colin Barnett has complained long and loud about the present arrangements for GST distribution, negotiations surrounding a proposed increase in the GST tax and a revamped distribution formula would give Mr. Barnett the opportunity to argue the case for a better deal for his state.

As Troy Buswell's recent budget has shown,despite the recent boom, our economic future is threatened by an explosion in state debt.

Western Australian government borrowings have ballooned to a frightening 22 billion dollars and are predicted to go way beyond that. Treasurer Buswell has forecast that by fiscal year 2016/2017 our states debt burden will reach a crushing 28 billion dollars. Which means WA needs to find more money, and lots of it.

So, despite Mr. Abbott trying to soothe voters by dismissing the prospect of a rise in the GST levy under a coalition government, you can guarantee that when the Premiers gather at their annual conference, an increase in the GST levy will be raised, discussed, and promoted.

All the Premiers want more money.

If they argue for a rise in the GST levy as they will, and if Mr. Abbott is then Prime Minister, as is likely,

should he and his government agree, he will explain away his change of mind by saying,

"blame the state's, it was their idea".

Of course this scenario is dependent on a coalition victory, and right now the polls, and the bookmakers, suggest such a win is highly likely.      

So, brace yourselves for the coming public debate about the "need" for an increase in the GST

Read more: http://www.watoday.com.au/comment/what-are-the-odds-on-a-gst-rise-20130812-2rqyg.html#ixzz2biLeNplj

cods wrote on Aug 12^th, 2013 at 11:45am:


If this is a debate on tax, dear, why paint yourself into a corner? An increase in the GST puts the tax burden onto you.

Putting a GST on food taxes the poor. Why not increase income tax and tax the rich?

Nothing is inevitable. Taxes are political. Who do you want to pay? Who is it fair to tax?

this is pitiful.  there will be no change in the GST during the next govt.  that is all ANY govt can promise and in this case Abbott has done exactly that.

The irony is the faux outrage from the laborites who support a party and leaders who lie all the time.

longweekend58 wrote on Aug 12^th, 2013 at 12:00pm:



Then why are the liberals doing a full review on tax and specifically including the GST in the terms.

Like any typical Liberal government do they just love to waste money.

Abbott in debate mode is clearly reacting in the heat of the moment and is not tied down by their fixed policy statements on paper.

In other words this is the area where he has warned us that he will be telling lies. I tend to believe him in this rare instance - he was in fact telling lies.

longweekend58 wrote on Aug 12^th, 2013 at 12:00pm:



Abbott says - there will be no increase in GST under a Govt. I lead.

Since all politicians lie - how can you trust him?

cods wrote on Aug 12^th, 2013 at 11:57am:


Yes, dear, but you might find those tomatoes get to you a little worse for wear.

Matty might move to Rhode island.

AXE THE TAX.

The henry review was an excellent review of the tax system and extremely comprehensive.  All the Coalition did was can it from the moment it was released and all the recommendations it contained.

Why do they want another review?q