Australians could find Goods and Services Tax (GST) levied on fresh food, health and education if some members of the Coalition have their way.
Prime Minister Tony Abbott’s own ranks are pushing for an expansion of the 10 per cent GST. Liberal MP and the member for Wannon in Victoria, Dan Tehan, said that the increase in GST was crucial “to maintain our standard of living”.
In the Australian Financial Review on 5 January he argued the reform could generate an extra $22 billion per year, and suggested it could “enable further serious reductions in direct taxes”, such as income and company taxes.
The GST reform will be considered as part of the taxation white paper process.
Cassandra Goldie, chief executive of the Australian Council of Social Service says her organisation is “very opposed” to the tax on fresh food and says, “regardless of compensation this will make fresh food less affordable and accessible for people” on low or modest incomes.
As opposition leader, Mr Abbott promised during an interview with SBS that there would be “no change to the GST”.
Do you think the GST should be expanded to include fresh food, health and education?