Should GST be raised and or broadened?

[Sheryn]

Political hot potato...

Personally I don't mind paying an extra .5% on the medicare levy to fund (or partially fund the NDIS national disability insurance scheme) as well as paying for our own private health cover on top of the medicare levy.

Nor did I mind when the flood levy was applied as I personally could see where the money needed to go to eg rebuild infrastructure.

As an economy Australia's revenue is decreasing but our costs as a nation are increasing and most Australians would like improved services for all sorts of things eg health, mental health, disability health, child care, education, roads, communication, aged care etc.

As one of the sandwich generation I wouldn't mind if I paid more GST to make the services available to families that need them.

Having said that we plan to babysit our grandchildren so they won't be accessing child care early although we probably would encourage preschool attendance when older and we both have mothers with dementia who are cared for at home and one accesses community care.

Question is should GST be raised and broadened or is there some other way to increase revenue that is easily implemented.


http://www.abc.net.au/news/2013-08-07/rudd-vows-no-gst-changes-under-his-government/4870126


BTW
Heard there has been a mini baby boom so more child care for working mother will be required and of course baby boomers will require more aged care in the future.


Sheryn

 

[ok180]

When the GST came in they were supposed to abolish a lot of other taxes - it never happened. If they raise it again no other taxes will go.

If they need to raise more money they way to do it is straighten up the public service. Way way way too much wastage in there. When I talk to friends of mine working in the public service the laziness and things they get away with are unheard of in the private sector. There must be billions worth of savings in there.

 

[VYBerlinaV8]

As someone who spends less than they earn, I will always support an increase in GST balanced with a reduction in income tax.

 

[cimbom]

No, I would not support an increase in GST. The government currently (and historically - at least in recent history) spends tax revenue so poorly that I am not offering to give them any more.

 

[cimbom]

When I talk to friends of mine working in the public service the laziness and things they get away with are unheard of in the private sector. There must be billions worth of savings in there.

Give me a break. There are lazy and unproductive workers in every sector and industry.

Great idea too - increase unemployment to create economic growth. Have you considered a career as a magician?

 

[MRO]

An increase in GST would require agreement by all states and territories - cant see that happening so almost not worth discussing.

 

[ok180]

Give me a break. There are lazy and unproductive workers in every sector and industry.

Sure! Difference is they don't survive for long in private industry!

You could slash the public sector back office in half and not notice any difference.

 

[Ausprop]

Should be left as it is. the govt should have thought harder before giving away all those plasmas, insulation and school halls. If their budget is tight they need to cut back in their own wasteful areas

 

[HotRod]

When the GST came in they were supposed to abolish a lot of other taxes - it never happened. If they raise it again no other taxes will go.

If they need to raise more money they way to do it is straighten up the public service. Way way way too much wastage in there. When I talk to friends of mine working in the public service the laziness and things they get away with are unheard of in the private sector. There must be billions worth of savings in there.

The Henry tax review did not even consider the GST. How can a tax review not include it????

The GST should either be broadened to everything at the current 10% rate, or increased to say 12.5% (makes it easy to work out, being 1/9th of everything after having 1/8th of the cost base added to it) on the current base. I think if it was to abolish all other taxes like stamp duty it would need to go to 12.5% across everything.

Agree with the PS comment. I worked in there for 9 years in the 90's and it was shocking the amount of dead wood and inefficiencies chewing up tax payer's money. You can't even sack people you completely **** up, they get shifted sideways to "special projects".

 

[alexlee]

The GST should either be broadened to everything at the current 10% rate, or increased to say 12.5% (makes it easy to work out, being 1/9th of everything after having 1/8th of the cost base added to it) on the current base. I think if it was to abolish all other taxes like stamp duty it would need to go to 12.5% across everything.

Thing is, broadening the GST base, and/or increasing the rate will make it more regressive. Especially if you broaden the GST base to food, for example.

 

[HotRod]

Thing is, broadening the GST base, and/or increasing the rate will make it more regressive. Especially if you broaden the GST base to food, for example.

But at the same time as getting rid of all the other taxes:

Fuel Excise
Tobacco Tax
Alcohol Tax
etc

Makes it cheaper for those V8 driving, Jim Beam drinking, Winny Blue smoking citizens.

 

[Aaron_C]

No, I would not support an increase in GST. The government currently (and historically - at least in recent history) spends tax revenue so poorly that I am not offering to give them any more.

I am surprised you feel that way (and I agree) but then support the Greens tax on everything???

 

[MarkB]

An increase in GST would require agreement by all states and territories - cant see that happening so almost not worth discussing.

Yes, most people don't realise that the GST can only be altered by by the agreement of all governments (state / territory / federal) [it was the same when it was introduced - in that sense the GST was more a Labour party tax than a Coalition tax, because at the time it was introduced the ALP was in power in most states & Territories]

Also.... most people don't realise that all the revenue from the GST is passed back to the states and territories (that was part of the deal struck). Wayne Swan doesn't get 1 cent of it.

So those people knocking how the government spends the GST - direct your frustration to the applicable state/territory government.

Should the GST be raised and or broadened.

Hmmm.... GST at rate higher than 10% and on everything.... where have I heard that idea before.... /me scratches his head.... buggered if I can remember....

Can someone help me?

[Btw - that's no criticism of you know who. Imo that's the GST we ought to have had. Not the b@stardised version that the Democrats forced upon us]

 

[Bigtone]

Report in The Australian last week, 24% plus of Australian Households main source of income is Govt payments, 24% holy cow batman.

What a joke, if we sorted out that mess then we wouldn't need to change any taxes except reduce the one's we have.

What happened to welfare being for the small minority who can't help themselves?

 

[HiEquity]

The GST is one of the best tax options available for government. The only real issue for increasing it would be the $1000 GST free import threshold. Income tax is far worse for the economy overall.

I would be very happy with an increase in GST coupled with a reduction in income tax, even if that just involved raising the income tax free threshold. But of course that's hard to implement with the state tax arrangements.

Increasing GST to compensate for removing stamp duty would also be great but where have I heard that before?

The problem is both State and Federal budgets are in a bad way - they need more revenue or big drops in expenditure. Unfortunately all we hear from the major parties in this campaign is about lower taxes and increasing services. I just wish at least one of them had the stomach to come clean with the Australian people on what is required.

 

[MarkB]

Increasing GST to compensate for removing stamp duty would also be great but where have I heard that before?

If by stamp duty you mean "stamp duty on property purchases", the reality is that it was never a part of the deal for getting the GST introduced.

No, stamp duties on residential property purchases are here to stay (for the foreseeable future, at least) and there is no agreement, formal or otherwise, to review or abolish them.


Under the Intergovernmental Agreement on the Reform of Commomnwealth-State Financial Relations (IGA) that all states and territories were signatories to prior to the introduction of the GST, the following was agreed:

The Ministerial Council will by 2005 review the need for retention of stamp duty on non-residential conveyances; leases; mortgages, debentures, bonds and other loan securities; credit arrangements, installment purchase arrangements and rental arrangements; and on cheques, bills of exchange, promissory notes; and unquoted marketable securities.


Appendix A of the IGA then explains (in not much more detail) what they mean:

(i) Stamp Duty on Non-residential Conveyances

Stamp duty levied on the value of conveyances other than residential property conveyances.

....and....

(iv) Stamp Duty on Mortgages, Bonds, Debentures and Other Loan Securities

Stamp duty levied on the value of a secured loan property.



Mark

 

[HiEquity]

If by stamp duty you mean "stamp duty on property purchases", the reality is that it was never a part of the deal for getting the GST introduced.

While this is true, there was a promise to remove stamp duty on business property, mortgages, credit arrangements, etc etc etc. Which never eventuated.

The reason for that was the Democrats insistence of removing the GST on food etc. That left a big hole in revenue projections for the GST, which meant having to remove the requirement for the States to dump these taxes. The Democrats wanted to increase petrol excise to make up the difference but the govt said no.

This just highlights what can happen when theoretically good ideas like this meet political reality - it gets impossible to predict the outcome!

 

[Angel]

Report in The Australian last week, 24% plus of Australian Households main source of income is Govt payments, 24% holy cow batman.

What happened to welfare being for the small minority who can't help themselves?

Some within that small minority breed like there is no tomorrow.

The more educated someone is, the fewer children they tend to have. Don't ask for a reference, it is common knowledge.

 

[Aaron Sice]

but the GST just speeds up money movement to play economics dumbfuggery tricks - what does it add to the bottom line?

 

[weg]

You could slash the public sector back office in half and not notice any difference.

Agree.

That pyramid is now a square.

A case of more staff without a corresponding improvement in service. Note the bottom of the square and pyramid being the same - number of indians.