In the run up to the 2007 Federal elections, there's been no mention of what might happen to GST should Labor obtain power. Remember, it takes an agreement between all States to change the rate of GST. If Labor should gain power, perhaps this is how they will provide enough funding for all the election promises which will surely follow in the months to come. Are there any checks and balances to prevent a change of GST to say, 17.5%? How is it that the Coalition hasn't picked up on this one? Are they waiting to spring the trap later into the election campaign?

Who introduced the GST?

Is this the Coalition's new scare campaign? Surely they can do better.

Oligarch, I'm simply asking a question that I'm hoping someone can answer for me. You must admit that such a senario is possible. I'd like to know what measures are in place (or not) to prevent an increase in GST should Labor gain power at the next election. I might also add that I am not, repeat not, a Coalition voter, although I can't imagine why the Coalition would let such an opportunity such as raising this issue sometime before the election slip through their fingers.

Nobody can answer a question like this. Politicians say all sorts of nice things just to get elected, then do whatever they wish to after they are elected. Between elections, we are subject to the dictatorial whims of whoever we are silly enough to elect.

Not that we have much choice in who we elect. It never ceases to amaze me that people on this forum and in wider society actually think that one Australian political party is better or worse than another. The only two parties able to form a government at the present time are bad news; and their is nothing better on the horizon.

I believe that the Coalition manages the economy better than Labor, but both are cheats and liars.

It really makes no difference who is in government in Australia, and that includes taxes like the GST and everything else which touches the lives of all of us.

A politician is a politician is a politician. All of them are increasingly irrelevant to our well being because they are not interested in it. We should be looking at ways to bypass the lot of them.

While it is certainly POSSIBLE that the GST could go up at some future point, any Government doing so in their first term would be deeply and utterly stupid, and no matter what you may think of the Rudd/Gillard ensemble, I don't think anyone is arguing that they are stupid. So, yeah, I highly doubt there is any chance of a higher GST in 2008.

"A politician is a politician is a politician. All of them are increasingly irrelevant to our well being because they are not interested in it. We should be looking at ways to bypass the lot of them."
Amen to that Leigh, although I haven't the faintest idea of how the Australian people can be motivated enough to bring an end to our current two party political representation. The whole system has become a joke with ordinary citizens bearing the brunt every time. I suppose a pessimist might say that's our lot in life....to be born, pay taxes and die, yet it's optimism that keeps the dream of a better life alive. It's why struggling political groups such as People Power spring up from time to time. The optimist among them strives for "something better" but doesn't quite know how to obtain it.
Perhaps you're right Leigh in saying that nobody can answer my question pertaining to Labor and the GST, however I'm certain it's crossed the minds of both Labor and the Coalition and will raise it's head at some stage in the run-up to the election this year.

I don't have the faintest idea how to bring about a change to our two-party, tweedlie dum and tweedle system, Aime.

Any solution needs the participation of Australian citizens and, as most of them are self-interested duds, there probably will never be any change.

I don't seriously believe that all the Labor Premiers would be too keen on comitting collective political suicide in this way.

A Federal Labor Government will put more pressure on states to change their governments in any case.

There is no great need for extra Federal Government revenue. Fiscal surpluses have led to discussions about tax decreases, not taxation increases. The problem maybe more an embarrassment of riches, There is speculation that the government will not be able to offer more income tax relief because this extra fiscal stimulus could feed inflation. This would have the flow on effect of increasing interest rates. Similarly no government would want to put up the GST if it flowed on to inflation.

The Federal Government is running massive budget surpluses. So unless Howard embarks on yet another pre-election spending spree later this year, a Rudd-Labor Government has enough revenue at its disposal to last awhile. Admittedly, Rudd would be tempted to rectify a decade of underinvestment in education, health care, infrastructure, renewable energies etc. by the Coalition. However, I suspect Labor's desperation to prove itself fiscally responsible will prevail. I can also envisage the State Labor governments pressuring Kev into addressing the vertical fiscal imbalance in line with his promise to reform federalism, but I doubt Canberra will ever completely loosen its grip over the purse strings.

Wayne Swan has been banging on about much-needed tax reform for some time, so we might even see some tax cuts under a Labor Government. Whether this could mean giving with one hand (income tax reductions) and taking away with the other (GST increase) remains to be seen.

The original proposition of this thread implies that there is a difference between Liberal and Labor on these matters. In who's dreams?

Hey.. to all you new blokes and sheilas..*welcome* :)

Sounds like a good choice for a scare campaign, but who knows.

Have fun all...

The GST, while collected by the Federal Govt, is a State tax, with revenue going to the States. It doesnt boost our Federal surpluses. There are presently several state govts, in particular NSW, that would salivate over the thought of new revenue. Heck, it might even bye what the NSW govt is waiting for to come good on its promise to abolish a whole range of other state taxes (which it was SUPPOSED to do after GST was introduced). Any NSW residents notice that the stamp duty (tax) on their insurance policies went up this year (yep, they were supposed to get rid of this one back in 2000)? its not the only state tax to rise. There are a few NSW state taxes due to decrease or phase out in 2012, but my (rather cynical) guess is the the incumbent labor govt is expecting liberals to be in power then, and will happily let them deal (or not deal) with the cashflow problems expected to arise from this.