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Our politicians can't be trusted with a 15 per cent GST : Comments
By Brendan O'Reilly, published 6/11/2015Any new income tax cuts funded by a higher GST will likely only be temporary, and all we will end up with is higher taxes overall.
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What I said was "The GST was also supposed to result in the abolition of some inefficient state taxes". This statement refers to the carrot put forward by those proposing a GST, when it was being sold to the public before the 1988 election.
I did NOT say that "state governments promised to abolish land tax and stamp duty but reneged on that commitment". You are both taking my statement out of context and also forgetting that the State Government commitments (made half a decade later in the mid-1990s) were only made after the more limited GST was negotiated with the Democrats. By then many of the originally floated "carrots" were well and truly pushed off the table through insufficient revenue.
Abolition of stamp duties certainly featured in the selling of the GST. There were fewer references to land tax. The federal and NSW governments in 2006 both engaged in advertising campaigns concerning claims that New South Wales had breached its contractual obligations under the 1999 GST Agreement by continuing to charge stamp duties and land taxes. The New South Wales State Government eventually announced in its budget that it would reduce stamp duty and land tax, but critics argued that the State Government did not go far enough.
See https://en.wikipedia.org/wiki/Goods_and_Services_Tax_%28Australia%29.