Abbott rejects calls for GST changes
Prime Minister Tony Abbott says he won’t be changing the GST despite calls from within his own party for a fresh look at the tax.
Liberal West Australian Premier Colin Barnett reignited the GST debate on Thursday when he called on the Abbott government to consider lifting the rate of the tax.
ACT Labor Chief Minister Katy Gallagher has weighed in too, saying there should be a national conversation about possible changes to the GST.
The Coalition came under fire during the election campaign because its white paper on taxation – to be released in the first term of government – will include a look at the GST.
It argued no proper review of the nation’s revenue base could be undertaken without including the 10 per cent GST.
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But Abbott ruled out any change – a position his spokesman re-confirmed on Friday.
“There will be no change to the GST, full stop, end of story,” the spokesman said.
Gallagher said there should at least be discussion about changing the tax’s rate or base.
“The problem is the commonwealth has to take all the political heat on it and then distribute the money to the states,” she told ABC radio.
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“If there is to be any rational discussion about the GST, all states and territories need to back in any federal government that’s prepared to examine and look at whether the rate does need to go up or exemptions need to change.”
Barnett, who’s state lost its AAA credit rating this week, said the new federal coalition government must look at increasing GST revenue.
“I don’t expect a white knight to come from Canberra and fill up our treasury with money but I do believe that Tony Abbott as prime minister … does have to show some leadership on fixing some of the fiscal imbalance of the Australian federation,” Barnett said.
“I’m sure he doesn’t want to do that, but I don’t think he has much choice.”
Labor leadership hopeful Bill Shorten said his party does not support increasing the rate or broadening the base.
“We don’t see the need to put an extra tax on bread and milk,” Shorten said.
“We don’t see the need to increase the cost of living for Australians.”
