About time it happened here
New Zealand increased its GST to 15% in October 2010
and sadly Australia is lagging behind.
If Abbott had any backbone we would have it now.
This would help pay off the enormous debt we have accrued.
ABBY please..... who the hell have you been speaking to. Or are you THAT intent on pushing Lib corporate policies that you simply do not care.
GST is a completely INEQUITABLE tax that taxes everyone 10%, irrespective of whether you earn money or NOT. Those MOST disadvantaged in Australia are hit the HARDEST.... those that earn the most use off shore if they are big enough (Packer) OR are laughing all the way to the bank when this form of tax (GST) just made ORDINARY Australians pay the BULK of tax money. Alleviating the need to ensure that those that earn more pay more taxes.
Small and medium business were BURDENED with NEW LETHAL COMPLIANCE requirements and with exorbitant administration costs which were NOT there previously.
Re: STATES & GST. Prior to GST, the Federal Government dished out funding to the states from the income and other taxes received. When the GST was introduced this money went straight to the States..... disadvantaging those that earned the most for Australia but had lower populations, such as WA & QLD and advantaging VIC & NSW.... a contentious issue on its own. HOWEVER, the Federal Government NOW had ALL the income and other taxes RAISED to bolster its coffers and only had to dribble out small dollups to the States.
So, effectively 10% on ALL goods and ALL labour done in Australia with the main exceptions of food and medical was charged, take off what used to be charged - wholesale sales tax and you have approximately a gain of 7%) .... if you were to increase everyones tax rates by 7%, every single person would be up in arms.
SO TELL ME WHY did those that support the WEALTHY (Liberal Party) propose the GST in the first place...... OBVIOUS really, it TRANSFERRED the bulk of the 7% tax increase to the ORDINARY Australians. The Wealthy, were laughing all the way to the bank.
NOW, we have the likes of YOU Abby suggesting that it is okay to BURDEN the ORDINARY Australian again with increases to this DISGUSTINGLY inequitable TAX, just so the wealthy can make even more wealth without contributing further to the costs of a clean and healthy Australia.
Would YOU accept an increase to the taxes on your wages of 7% and let the wealthy increase only by 2%.... because that is what this tax does!!!!
Musi
I was talking to to aqua or was it Micha about it, anyhow he seems very sure that is right.
He says it is the most equitable of all taxes - they have that Tax system in New Zealand and apparently working very well.
Gat is the fairest way to collect tax. It ensures that no one avoids paying their fair share of tax by tax avoidance or evasion schemes
dont forget Mussi there is no GST on food rent and mortgage / financial transactions. That's where theyajority of the popes money is spent.
Please Mussi have some perspective
Solomon
Yes, agree that the essentials of food, rent, medical and finances were removed (Howard required the approval of Meg Lees Australia Democrats, so could NOT implement the GST as he liked... these factors were a compromise, especially food).
HOWEVER, it still does NOT detract from the fact that those MOST disadvantaged in society, effectively, pay the most under the GST making it the MOST INEQUITABLE TAX in Australia.
Additionally it is NOT the fairest way to collect tax..... it is draconian in that businesses have to complete and submit a tax form every three months and if they don't they are severely penalised. AND it is not only a ONE OFF payment, as was the case with the WHOLESALE SALES TAX..... the wholesaler paid it and that was it... those that were exempt, simply claimed it back. OBVIOUSLY, the MOST SIMPLE!!
GST is accounted for and tax forms lodged through EVERY SINGLE TRANSACTION from wholesaler to distributer to agent to retailer to customer..... every single one of these organisations has to account for the INS and OUTS of every transaction and LODGE GST compliance documentation.... a costly and time consuming affair. Even innes acknowledged this additional cost and compliance burden on businesses, in relation to the GST.
There are so many negatives with this tax, I don't know how to change my perspective on it...... the bit about the Pope threw me and helped make me smile a tad.... helped maybe.
It's a fair tax because eventually ALL income is taxed.
It is a nonsense to say the poor are the most disadvantaged.
As I said most of the poors and the popes money is spend on exempt goods and services.
Additionally the lower paid pay a much lower income tax and the tax free threshold helps.
the wealthy however pay a higher rate of income tax and eventually almost all their wealth will be aubject to the GST. Comsumption may be delayed but when the money is spent the tax kicks in.
thats why it's a fairer tax. The wealthy cannot avoid it
GST is an inequitable tax falling harder on those with less to spend. It has done nothing to catch the black economy and has probably enlarged it by quotes given for cash in hand being cheaper. A federal tax that the buffoon Costello called rivers of gold yet it was years before the tax raised enough to catch up with the federal grants it replaced. Tassie and NSW in prticular were the worst affected.
"Probably" for quotes for cash being cheaper.and done nothing to catch the black economy
No wonder you're a dunce!!!
I would take the time to explain, but experience has taught me it would be wasted on you
I realise you are set in your thoughts ( ideology ) but you may recall that Howard and Costello said the GST would capture the black economy.
" TAX dodgers are cheating the country of up to $100 billion a year in undeclared income through the cash economy more than a decade after the introduction of the GST.
The Australian Tax Office has revealed it is receiving 164 tip-offs a week from angry Australians providing credible information about alleged cash economy activity.
Experts admit the GST has failed to put the underground economy out of business, and some believe the GST has made it even easier to cheat by failing to declare income. "
http://www.heraldsun.com.au/news/national/tradies-are-dodging-the-gst-in-a-100-billion-cash-economy/story-fndo317g-1226468469128?nk=6964c280fb1f8c0b427dff1a68da316c
The source is the " dunce " heraldsun.daily telegraph .
Google " gst has failed to catch the black economy " and you will get many more sources.
So solly keep up the insults because from you they are like a lot of your posts , farts in the wind.
Ok I'll bite.
So Geomac, if GST was abolished, it would make not declaring income less attractive ?
So more people will declare their income and the cash economy disappears.
with GST those not declaring income still have to buy their inputs and therefore are paying GST.
They cannot claim the input tax.
Dunce!!!
You raise abolishing the GST. I said the main argument Howard used for the GST was capturing the black economy and it has failed to do so. Can you at least stick to the topic which you yourself rubbished ?
Now a tradie or handyman does a job and gets paid in cash. The person who hired him pays no GST and the tradie etc pays no income tax. The goods used on the job have GST but the tradie is not paying for it because its part of the quote/job. The GST on the materials is paid but no GST is paid by the customer for the job and no income tax by the tradie.
I am sure you have a rebuttal but no matter which way you twist it tax is avoided. Which brings us back to my original comment which your rubbished.
A Worked Example that even an 8 year old should understand
John a plumber does some work for Mrs Smith an old age pensioner.
SHe wants all her tap fitting changed
John buys the fittings at Bunnings for $1000 plus GST of $100 = $1,100
He charges Mrs Smith $1.100 for the fittings plus another $1,000 for labor
Because he is a labor lefty withe a sense of entitlement, he asks for cash so he doesnt have to declare GST and Income
Total Sales = $2,100
Mrs Smith another labor lefty keeps her millions in a fire proof safe at home so she escapes the asset test and deeming provisions and gets the maximum pension.
She's happy to pay cash because John's prices are 10% less than what she would have paid an honest plumber.
With his newfound wealth, John splases on a 60 inch LED TV for $1,900 plus GST of $190.
HOW MUCH TAX HAS THE GOVERNMENT COLLECTED FROM JOHN THE TAX CHEAT.
Annswer - $100 + $190 = $290
HOW MUCH TAX WOULD THE GOVERNMENT HAVE COLLECTED FROM JOHN THE TAX CHEAT IF GST HD NOT BEEN IMPLEMENTED?
Answer - SWEET F A
Off to the pub. Will have a pint and a laugh on you !!!!!
Libs always have been the highest taxing govt. Disgusting taxes like the gst hurt the poorest.
YEs we pay GST on bills
Sweden is considered to have one of the best Social Security in the world - their GST is double ours.
GST was supposed to replace not only wholesale sales tax of 50% on a lot of items but also stamp duty and financial levies. Most states were slow and not all have got rid of these. Tasmanians would be the worse off of the states with around 55 of people on benefits or limited incomes. And we pay GST plus stamp duty on all our insurances as well as other documents. Of course the biggest employer is the State Government and we have more public srvants than NSW with largest population of 5.5 million against our 1/2 million.
What annoyed me and still does is that here unlike everywhere else, UK Europe States etc GST is included in the prices. So they can cheat and we cant check retail prices without it etc. Should be added at the till. Less red tape for the retailers etc too.
And somehow all managed not to take the 50% wholesale sales tax off of cosmetics etc. Checked at the time. Prices came down around 10% instead of 40%. If they had had to do it correctly taken off wholesale sales tax and shown retail and then added the 10% at the till to total purchases. We would have had a clear vision of creditability.
But then governments of all ilk club together in their best interests dont they?
On pay, on compulsory voting as makes it easier for them, and on things like lets not get too involved in tax reform and make our own pay lower. Just hit the silly sods who havent a voice.
And get these same silly sods to form a party to thwart them. Impossible only have to read posts here and on front page. All playing for their 'teams'
Ask Innes Ask Henry.
And I do agree with Mussitate on GST it isnt really a way of making all pay at all it is just a way of fooling the people that its fair.
Looks good for the states to get the money collected. But hasnt shut them up and they still want it per capita which would disadvantage the smallest states etc.
And it doesnt hurt the wealthy at all.
The luxury tax on boats, planes and automobiles did. Gone.
Really also the real solution to income collection on earnings is for all to be on PAYG that way the Rhineharts, Packers etc. as well as many others on Boards galore would be paying income tax on first and then emergency tax on second and third incomes/jobs, and government would have it to spend all year and then they claim back at years end etc. Instead of borrowing and paying interest a saving. And when Howard came in 1996 there was billion or so outstanding in Lawyers and Barristers income tax alone not collected some for 20 years - 800 people in all were to be targeted incuding Paul Keating, and much was collected. But it shouldnt have been let go. Hawke/Keting were in for 14 years and so much under their watch.
6 years of Labor and they didnt once try to collect outstanding taxes and on the Henry Review they were more for once again hitting the most vulnerable in our soceity just as Hockey is again too. Not much was instituted and their Mining Tax was a dud. Along with carbon tax too, as it was the RET levy which hiked prices around 70%+ and still there. And here in Tassie the Labor party and Unions along with Libs want to keep it. Unreal. Never replace totally coal. And we have 400 years of it cheap power would make us competitive. Now China want to charge triffs on coal when Libs are trying for FTA when who needs it - they export more to us then we to them.
And of course even the UN has abandoned AGW and new tax is going to be put on children. Baby + tax. Given again to third world. And of course since they have the majority of the babies these days. One again has to say oxymoron policy. International paper being contemplated lets hope debated and not just signed up to like Rights of the Child.
Of course the left is now arguing that the AGW aka Climate Change fact that is has not warmed for 18 years now and no indication that it is going to stop cooling to date, is just a pause.
And GST is on essentials like power gas OTC medicines as well as some foods and eating out so does hit those with lower incomes more than it hits the wealthy.
And so Mussitate is correct imo it is a tax designed to hit those least able to afford it because of being on essentials, elecricity gas so in fact, like RET Carbon taxes, GST does push up price on all food and purchases .
None of the parties actually give a damn about the majority of the people, both Labor and Liberals take donations for favours from business and wealthy, so does even those far left oxymoronic Greens, took largest single donation ever 1.6 million
GST goes only to the States and Territories and they would only waste it.
The Feds would have to increase other taxes to pay off debt.