Wednesday, 1 April 2015

Australian Treasurer Joe Hockey needs to come up with a better argument concerning the federal Goods and Services Tax

David Pope in the Canberra Times, 30 March 2015

Brisbane Times 30 March 2015:

Treasurer Joe Hockey says Australian consumers have changed their behaviour so much in recent years, through online shopping and choosing more GST-exempt goods, that they are putting pressure on the GST as a revenue-raiser.

Apparently Joe Hockey is upset that this consumption tax raised $47.4 billion in 2012-13, $50.7 billion in 2013-14 and, is expected to raise $53.7 billion this financial year, $57 billion in 2015-16, $60.4 billion in 2016-17 and another $63.8 in $2017-18.

That’s not good enough for our millionaire Liberal treasurer.

It appears he is rather perturbed that people are still buying GST-exempt basic fresh food, simple dairy products and unprocessed cooking ingredients in their local shops or purchasing online second-hand, handmade or other goods worth less than $1,000.

This is the rather weak excuse he is offering for encouraging the states to believe there should be more in the federal Goods & Services Tax kitty.

The GST is a regressive tax when applied to low income households and no amount of vague talk in the mainstream media about possible ‘compensation’ for pensioners will change that.

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