Comrades, well Joe – I’ve been defamed – Hockey has said we need a ‘mature debate” on tax and that will include of course the GST. Now, blind Freddie could tell you that perhaps the best way to increase the tax-base is to crack down on the rorts in the tax system. This ‘mature debate’ might want to look at superannuation tax-breaks for high end earners in which the tax-payer is paying for super top-up for very high earners, whilst the plebs have had their annual $500 super top-up slashed by the Abbott Government. Fair? No, but then again that’s the tax-break!
Another is to increase the Capital-Gains Tax on the sale of rental properties that have been negatively geared. Also I know some of youse will scream at me, but it is time for Negative-Gearing to go, or at least slowly removed over a ten year period. This should at least allow investors time to disinvest from the property market in an organised manner, instead of a wild stamped!
Now that’s just three things I can think of in this ‘mature debate’ on tax, which will be completely denied by Mr – I’ve been defamed- Hockey and Mr – Red Budgie Smuggler – Abbott. They’ll just look at my suggestions laugh and say, “Rupert won’t like those ideas”. So the suggestions will not get up under this government at least. Meanwhile the tax base shrinks and continues to shrink unless we take a stand and demand changes.
Now Hockey has suggested increasing the GST rate to address the shrinking tax base. However, he has not suggested what it should be increased too. Victorian Premier Andrews, in a way shot the proposal down in flames. But as he pointed out the GST is a very efficient at raising tax. But, it’s also very regressive tax. In other words it hits lower-income people harder than high-income earners.
But, as former Prime Minister, Paul Keating, said “Never come between a premier and a bucket of money”. The state-governments have had $18 billion slashed from their budgets in last year’s federal budget and the states are going to have to come up with a way to cover that shortfall in their revenue. So expect an increase in the GST.