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The Forum > General Discussion > I think we can trust Tony on the GST.

I think we can trust Tony on the GST.

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Unlike the now imfamous carbon tax lie, I think we can all relax with Tony Abbotts promise not to alter the GST.

He has even said openly that he won't touch the GST IN THIS TERM OF GOVERNMENT, so, reading between the lines would suggest it may well be on the agenda come election time, as unlike labor, or more so Julia Gillard, he will have the decency to take to the electorate, much like John Howard did.

On the subject of GST, if it is to be altered, then this most needy should be allowed to claim back some of their tax through the likes of Medicare, a move that could be means tested.

But I still say a transaction tax would be a worthwhile option to explore.
Posted by rehctub, Saturday, 21 September 2013 10:41:58 AM
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The simple fact is that increasing the rate of GST would be the most obvious and painless means to lift the overall taxation rate, if that needs to happen. Since it already exempts food, it will have minimal impact on the poorer members of our community.

And if it does, there are already many dozens of avenues for relief to be exploited, so there's no need to have a specific "GST rebate", as offered by rehctub.

It was obviously good politics, but poor financial foresight, for Mr Abbott to rule out a GST adjustment. The alternatives, if he really feels the need to pull back on the public debt, will involve mass asset sales, Medibank and Australia Post being first cabs off the rank.

What the government must realize, as many have before and many will again, is that there are limits to the amount of short-term savings that can be made by cutting into the public service. Without an adequate plan to have the employment slack taken up by private enterprise, all you are doing is transferring their costs from Government Departments to the dole. Slimming down - which is of course absolutely essential, we are so heavily weighted towards taxpayer-funded jobs-for-the-boys - will take an entire generation of consistent pruning and trimming.

So it is a great pity that Mr Abbott has hamstrung himself with this "promise".

What remains to be seen, of course, is whether it is actually a "core" or a "non-core" promise.
Posted by Pericles, Saturday, 21 September 2013 2:01:22 PM
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Rehctub while I agree with you totally, that Abbott is going to play the game fairly, telling us what he wants/has to do, & why, I can't see much reason for a change in tax mix.

It doesn't matter a damn whether the tax is taken as a GST, income tax, or a transaction tax, it is still going to cost heaps to administer & distribute, & all that is going to filter through to an increase in prices.

I reckon it is time for a drastic cut in welfare & government spending. It is crazy to pay some bureaucrat to take money off me, [income tax or charges], then pay another to pay my bills for me. Considering the rate at which we all know public servants work I can't imagine a more expensive way to pay my bills.

For god sake, leave us with our money, let us pay our own expenses, then help just a little if necessary those who are too dumb to organize things for themselves.

The welfare state must collapse sooner or later, under the weight of entitlement. It would be much less damaging for almost everyone if we dismantle it ourselves, rather than have it fall on top of us as with Greece.

Unfortunately I doubt Tony has the guts to be kind & tough enough to do it. So folks, stick your hand out for everything you can grasp, convert it to gold, & bury it carefully as insurance for the coming crunch.

Or just piss it up down the club, & have some fun memories when it gets tough. What ever you find best is fine, just don't fool yourself that your grand kids will have it anywhere near as good as we have, with you spending their future now.

Unless we stop trying to give everyone the standard of living they desire without asking them to pay a bit for it themselves, watch out grandkids.
Posted by Hasbeen, Saturday, 21 September 2013 2:17:43 PM
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Pericles, come on mate, just think of it. Transferring a hundred thousand public servants to the dole, would reduce our handout to these useless mouths quite dramatically. Something like 50/60 thousand a head should help the budget no end, & think of the peak hour congestion saved.

Reducing the number of in boxes in government departments by a hundred thousand or so, would increase business efficiency so greatly, any of those eliminated from our payroll worth employing would soon be absorbed in industry so boosted.
Posted by Hasbeen, Saturday, 21 September 2013 2:57:56 PM
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You can't trust Tony Abbott on anything.

("Stop the Boats", for instance - has just become "Hide the boats")

By my count, since the election, the LNP has continued borrowing in 3 lots of $800 million + 1 lot of $200 million.

Here's one of 'em:

http://www.businessinsider.com.au/australia-borrows-800m-whatever-2013-9#share

I thought they were going to stop that malarkey?
Posted by Poirot, Saturday, 21 September 2013 3:10:49 PM
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Sorry rechtub but I think you are wrong.
And as I have said in past thread and a dormant one here two days ago.
It is in my view in all our interests to raise it.
Most in formed folk will know it was the ALP who first mentioned it not John Howard.
And in all truth it offers us all a great deal, including the ability to drop, forever many small and hard to administer taxs.
Too the chance to introduce a form of *protectionism*
On line shoppers mostly do not pay and taxing at the same rate,*if a way to do so can be found * we protect Australian jobs.
Every one should understand we need a level of taxation to fund our asked for levels of so very much including health education and too many to list.
Abbott Rechtub has not hidden his intention to include this review of GST in his tax review.
We should not however trust any one to do our bidding.
I wish both sides would stop using this tax as a weapon and use it to deliver services we are now cutting.
Posted by Belly, Saturday, 21 September 2013 4:06:33 PM
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