Increasing the GST - Australians Can't Afford It

Monday, July 20, 2015

Joey Hockey, the federal treasurer, is advocating for the states to raise the GST. He is passing the buck to blame the states, if it is increased. 

When John Howard introduced the GST in July 2000 at 10% he safeguarded any increase, by stipulating all states and the federal government must agree to increasing the rate. Sorry Joe you can and will be blamed also, if the GST is increased.

Australians didn’t necessarily want a GST, and this was evident with a 4.61% swing against the Howard led government in 1998. They were outpolled by Labor, but won the majority of seats to form government. They had to rely on the Australian Democrats to get the GST passed in the Senate.

In 1999, an agreement was reached with the states and territories.The introduction of the GST, was to see sales tax on all items abolished and the phasing out of stamp duty, and other duties and levies such as banking and land tax. Federally levied personal income tax and company tax was also to be reduced to offset the GST.

Just recently, Western Australia complained that it paid in a lot more GST, than it received back. A Bill was introduced that gave the federal government no obligation to hand back revenue earned by that state, but to be divided to other non-performing states.

With the introduction of the GST we now pay tax on services that we never had before. People can't afford legal services let alone an extra 10% in GST, also on electricity an essential commodity, and GST on fuel as well as approx. 49 cents per litre fuel tax.

According to an article in The Telegraph 2014, these are the taxes on a $639,533 house, that’s 44% of the price of a property.

Direct taxes: GST $49,392; Stamp duty $24,228; Land tax $1,457; council rates $345.
Total $75,422

Indirect taxes (capital, labour and land) Paid on direct inputs $34,269, and on intermediate inputs $51,911.
Total $86,180

Hidden Taxes: infrastructure charge $27,801; Zoning restrictions $40,381; Planning delays/ uncertainties $38,094.
Total $106,276

A Centre for International Economics report found that taxes accounted for $267,879 of the average total dwelling cost of $639,533.

Peter Icklow, CEO of developer Monarch Investments said, “I’m selling house and land packages for $500,000 each and then paying the government $50,000 for each settlement.

Australians are taxed to the hilt, we are one of the highest taxed countries in the world. Yet our governments both state and federal, still struggle to make ends meet. This is due to waste and lack of accountability, so in order to keep their heads above water, they sell OUR ASSETS.

Joe Hockey says it is a fair tax everyone pays their share, this is not true. Businesses or individuals who are registered for the GST, claim most, if not all of their GST back, claiming it as a business cost. The GST is a regressive tax that imposes a greater burden on the poor than on the rich. It reduces the tax burden of the well to do (people of higher ability to pay) as they shift the burden disproportionately to the needy.

We have been lied to by both Liberal, Nationals and Labor. Oppose any increase to the GST until they live up to their promises to abolish all the other taxes. Also, curtail government spending by abolishing former Prime Ministers allowances, politicians generous superannuation schemes, that are not equivalent to other Australians entitlements, and their lucrative lurks and perks especially in light of Bronwyn Bishop, Speaker of the House of Reps, extravagant travel costs. 

Multinationals must pay tax here, and clean up our welfare system that is being milked by cheats claiming benefits they are not entitled to. Foreign Aid still needs to be reduced, we are going further into debt to fund other countries. Indonesia has said they don’t want our foreign aid yet we still give them $350 Million a year.

There are fairer tax systems, but the major parties are at the behest of big business and multinationals. The greater percentage of Australians who can least afford it, are hit the hardest. I opposed the GST many years ago, and I still say is not a fair tax for all Australians.

Pauline Hanson
Leader Pauline Hanson’s One Nation



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