A GST increase would hurt families that can least afford it, Maitland MP Jenny Aitchison said in response to Premier Mike Baird’s proposal.
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The Top End’s Chief Minister, Adam Giles, thanked other leaders who backed the goal unanimously, which would leave just the ACT as a territory in its role as the seat of national government.
Mr Hodgman and other state leaders will attend a retreat with Prime Minister Tony Abbott this week.
Keep tax changes on the table including increases to the GST rate and the Medicare levy as a way of addressing future shortfalls in health funding.
So how will this work?
The mood as the leaders entered the retreat this morning seemed positive, with Queensland Premier Annastacia Palaszczuk saying the meeting was an example of “coooperative federalism”, and Western Australia’s Colin Barnett declaring “the mood is good”.
VICTORIAN Premier Daniel Andrews insists there is nothing that will change his opposition to increasing the GST rate.
“Both [Treasurer Joe Hockey] and I have been quite consistent in our call in providing a level playing field for the provider of key services in Australia, whether they come from overseas or whether they’re provided domestically, and this is an area that we’ve been working with global partners on, trying to get a good understanding of where Australia’s tax system should be for the future, because we have a growing digital and e-commerce world and the tax system needs to stay up with that game”, he said.
Take your pick today: modelling by the Institute for Whatever expects the impact of an increase in Australia’s GST rate to be this many thousand dollars, and the poorest households will feel it the most.
The summit was called to try and find a long-term funding solution for public health and education. prompted after the Commonwealth withdrew $80 billion in long-term funding in the 2014 budget.
With the Medicare levy falling under federal taxes, an increase would skirt around her commitment without breaking it. Australian Industry Group boss Innes Willox says political courage is needed and believes raising the Medicare levy does not address problems in the tax system.
If Mr Baird’s proposal goes ahead, and if the “Netflix tax” comes into effect, Aussies will pay 15 per cent more for their music downloads, including those provided by streaming services. “Let’s ensure though that these taxes are fair, that they’re levied efficiently and that they contribute to economic growth in our country”.
Mr Abbott’s comment followed two days of talks with his state and territory counterparts about taxes, terrorism, methylamphetamine and domestic violence.
When he unveiled his own plans earlier this month, Weatherill opposed increasing the GST or expanding it to cover fresh food.
“And I think what the community wants to see from us is dealing with the problems in their interests, nothing else”.
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The details will be thrashed out at a meeting of the treasurers scheduled for August but the aim is to apply the tax to items values as low as $20.
