Why a GST hike can’t just be another money grab

Should the GST rate go up? Yes, we think the GST should probably rise to 15 per cent – but it needs to be part of a comprehensive taxation adjustment process. The instigation of a GST debate from a State Premier is another example of the chaotic nature of economic policy in this country. The debate is serious: a GST rate hike can’t just be another grab for money, which the community is sick of. Any changes to the GST need to part of a broader debate that considers other taxes such as superannuation and negative gearing; and that looks closely at how Australia spends its money. We think the tax debate also needs to focus on the plight of Australia’s savers who are seeing their returns decimated by taxation and inflation; a situation a GST rise will exacerbate by ramping up inflation. (VIEW LINK)