Pericles,

There was never any promise to roll back payroll tax in return for the GST. All the taxes that the states agreed to abolish in return for the GST have been abolished. There were only four of them – repeat, four. They were FID, BADT, bed taxes and stamp duty on quoted marketable securities (Reform_of_comm-state_financial_relations.rtf). For some reason, there is an urban myth that all sorts of taxes were going to be abolished, but no one repeating this myth has ever quoted from the original GST agreement – because abolition of those taxes is not in it. No one claiming that the states did not abolish the taxes they agreed to abolish has ever named the state and the tax in the list of four that was not abolished.

There was a commitment to review – not abolish - some other taxes, and as a result some of those taxes have also been abolished, but payroll tax was never in even this list. There was a later agreement, in 2006, to abolish stamp duties on mortgages, leases, and credit and rental arrangements with the last of these taxes to be abolished in 2012‑13, a year we have not even started yet.

Here is the timetable for the abolition of various state taxes.
http://www.budget.gov.au/2007-08/bp3/html/bp3_main-12.htm

The corollary of this argument for GST free "essentials" Is for a increase in tax on luxuries.
Just like it was before we got a consumption tax.
If tampons, deodorant, fresh food, nappies etc etc should be tax free then why shouldnt things like chips, chocolate, alcohol, soft drinks etc etc be taxed more?

The Democrats betrayed their voter base when allowing the never-ever GST to get through, and bought in without a mandate from the Australian people.

It does seem odd that items like feminine hygiene products are not exempt - they are not luxuries. Condoms should be exempt on that basis too, if we are serious about transmission of STDs or HIV. Where does it end? At least the most important essentials are exempt - fresh fruit and vegetables and other non-luxury food items. Although this is probably outweighed by the duopoly of Coles and Woolworths on food prices but that is an issue of competition rather than taxation.

We do need an overhaul of the taxation system - one that does not make tax collection the burden of business, and one that limits tax avoidance or exemptions at the top end.

There are too many rorts with GST - one wonders what the real collection figures amount to, minus the money lost to rorting. There is a huge problem with people lodging fake GST refund claims - millions of dollars a year and not enough tax investigators to keep up with the problem.

Is anyone else as sick as I am of the constant appeals to the PM to adopt political positions because she is a woman? Talk about adding more weight to her saddlebags.

Pelican spot on about the routing of the GST by business, along with all the other tax routing they do. 1,000 extra Tax Inquisitors would pay for themselves with a tidy profit for the fair dinkum PAYE taxpayer. The truth is there are few in Government who will take on vested business interests in this country. The conservatives see business as some kind of 'Mother Teresa' types doing some much good for us all.
Meg Lees now there is a blast from the past wasn't she "keeping the bastards honest" and remember John What His Name and the famous GST on the birthday cake saga.

Thanks Chris C, I stand corrected.

>>There was never any promise to roll back payroll tax in return for the GST.<<

There was a lot of talk about removing "taxes that impede business". But, as you point out, none of the key ones.