Is a GST hike looming in the next budget? 320



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Today the Sydney Morning Herald are reporting that the Commonwealth Treasury has explained and called for an increase to Australia’s GST.

The report states that the treasury cited Australia’s position as having one of the lowest GST rates in the developed world as a reason for an increase being acceptable.

In a discussion paper released to encourage contributions ahead of a white paper that will set out the government’s priorities on tax, the Treasury says that of the 33 developed countries that have taxes similar to the GST, only 3 charge less than Australia.

The report states that the OECD average is just below 20 per cent – almost double what Australia is charging. We currently raise $56 billion from the GST – if the rate was boosted by 10-15 per cent we could raise $80 billion annually.

The discussion paper is the first occasion on which the Treasury has been able to make public its views about the GST.

The SMH reports that treasurer, Joe Hockey, said the discussion paper marked “the start of a conversation about how we bring a tax system built before the 1950s into the new century”.

He also cited globalisation and the rise of the digital economy providing options that mean Australia no longer has to rely on an unsustainable income taxes system.


So tell us, if income taxes were to go down and the GST to increase so Australia was more in line with other developed countries – would you be happy? Or not? Share your thoughts in the comments below… 

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  1. Joe Hockey is desperate to bring us back into surplus but I just think he’s clutching at straws

    4 REPLY
    • Actually I thought Joe Hockey answered well on Bolt today when he said he could not guarantee that we would not be able to fix the problem immediately as we were still trying to pay the debt. A good interview,

    • He is clutching at straws, because he doesn’t want to be remembered as the worst Treasurer we have had.

      1 REPLY
      • There’s no fear of that he is the worst we have ever had or to give some credit the worst in living memory.

  2. I would be more surprised if they don’t put it up, that horrible Barnet has been whinging non stop about the GST, when he is not killing sharks. He seems to forget the rest of Australia carried W.A before the mining boom

  3. They only copy what the rest of the world does every time.Imagine if they did have to use their own bains.How fucked would we be them. God Forbid.

  4. just make it across the board–at the moment too many things are exempt

    4 REPLY
    • your old, so am am I, but there families out there with young children they have to should never be on fresh food

    • I agree it shouldn’t be on fresh food but I do believe it needs to be looked at along with other taxes that are too high . When it was brought in, I kept looking at goods that were supposed to be exempt and I noticed over time the prices did creep up. There was a watchdog but not a very good one.

    • I’m an ex-pat Aussie living in NZ for 9 years, and I’m disgusted that they have GST on all food products, including fresh fruits and vegies/non processed. There are families on low incomes here that can barely afford to feed their kids, so some of the schools have had to implement a breakfast/lunch program. Meanwhile, the pollies have all got massive pay rises! When buying our weekly shop in Australia, we pay under $10 GST, because we buy mainly unprocessed foods, while here in NZ, it works out to around $50!

  5. Do you remember when we didn’t have GST? I do. I was applalled at getting my groceries or my phone bill and having dollars added on to it, just because I shopped. There are I think about 193 countries in the world who have GST. Comparing us? Will he compare the wages, how much they pay in tax, what sort of things are taxed, tax return percentages? I think not. He just wants to say he got the national debt down. Here’s how to get the national debt down. Stop paying yourselves so much. Why do pollies think they deserve more? Is it because their job is more important? Most of us do our job, no matter what it is to the best of our ability and it is just as important collecting the garbage as it is to run the country. If you don’t do it right, then things start falling apart. The difference between the garbage man and the politician? The garbage man would be dismissed if he constantly did a bad job. Go away Joe, or take me up on my offer and come stay here for two weeks.

    22 REPLY
    • Agree. Also I think when they brought in GST there was such an outcry against it that they said that other taxes would be removed like sales tax etc. Even was hints that payroll tax would be lowed if not removed but that never happened. I remember too they said it would never be like NZ and how expensive it was there. Lies never go away

    • I am an ex NZ! Left because I couldn’t live! Lived here for over 40 years and watched all the changes over the years take place. Worked over 55 years and still work part-time because just can’t manage on an Age Pension and Family Benefit and raise four little grandchildren. Oh for those Naysayers fought Family Services thru court to get these babies out of foster care, a costly exercise and change my life to give them a life. Today life is tough and appears to be getting tough for those over 60. By the way Fran I won’t see 68 years again. And why must we compare ourselves to other countries? Are they doing any better or worse than us? N.Z is not!

    • I’ve heard from so many New Zealanders that the GST was really bad for New Zealand. You Gayewynn, however, have my admiration. 🙂

    • Every country has a GST. In the US you pay 2 taxes, State and Federal.Each state is different but Florida only has a state tax of 6% which gets added onto your purchase after you buy it so the price you see is not what you end up paying. At least with the Aussie system you pay what you see. I know this because I have lived part time in Florida for the past 15 years.

    • Fran – Your memory is very poor. Before there was GST there was wholesale sales tax on every item you bought. Tomato sauce had 32% wholesale sales tax added to it. Maybe you didn’t understand how the system operated before. You should have learnt.

    • Hello Joe, glad you are once again picking everything I talk about. At least you are leaving others alone when you do it. Gee, you must be super smart. Your business must be thriving. 🙂 Have a good afternoon.

    • You know, who cares what Canada or Timbuktu has. We need to focus on us so our children and their children have a better life……..

    • From an ex New Zealander GST never hurt any of us yes it made things a little dearer and we all moaned for a while and got over it. THE DEBT HAS TO BE PAID BACK. As long as it stays off food. Also too much overseas aid charity starts at home why should Austrailians suffer because of overseas aid.

    • What department and what paid back Heather? I have paid tax all my life. I don’t owe the government anything. And as far as New Zealand goes, I am only saying what has been told to me. We all have our own opinions though.

    • Yes we do Fran, and I have paid thousands in tax also have never ever been out of work.But we all need to keep this great country running and debt free. Or our kids are going to suffer just my thoughts on the subject also….

      1 REPLY
      • ”We need to keep this great country running and debt free?” Then tax corporates and the wealthy. Clamp down on tax evasion. Cut the expensive superannuation tax concessions for the very rich. GST is a regressive tax that forces the poorest to carry the biggest burden. It is grossly inequitable. Applying it to fresh food will cripple the poor and adversely impact on health costs.

        As for so-called ”intergenerational wealth transfer”, the facts don’t support Hockey’s arguments. There has already been a massive wealth transfer from the aged to the young via interest rate cuts. Economic conditions have pulled the rug out from under many prudent retirees who worked and saved hard, while helping the younger generation. Compulsory superannuation has ensured that over time, more and more retirees will be partly or fully self-funded. Meanwhile, our aged pensions are low by world standards, as is our national debt. But supporting the aged population is an obligation that has been accepted by all generations until now. It appears selfishness has now overtaken respect and responsibility.

        What we need in this country is less focus on the debt and more focus on generating growth, which is best done by addressing inequality and creating incentive – i.e. taxing the wealthy fairly and maintaining a strong support system so that the less advantaged can continue to consume, because consumption = jobs and revenue.

    • The GST replaced a number of other taxes. It is a fairer system where you pay tax only when you purchase items. Look back on the previous system.

    • Everyone is entitled to their opinion Marie, but if there wasn’t a way to make more money for the government, they wouldn’t bring in these schemes. My opinion.

  6. GST changes can ONLY be implemented by full agreement with all the states and territories… it can NOT be an arbitrary change by ANY minister..

    1 REPLY
    • Absolutely correct Phil – the GST cannot be raised (or even lowered for that matter) by a Federal Budget, even presuming all of it manages to get through the Senate. Every cent of the GST goes to the States and Territories so their governments – NOT the Federal Government – must unanimously agree to a lift (or a decrease) to the GST rate. And the chances of that happening are zero.

  7. Its a tax on taxed money they can,t get enough of the average joe,s money deposit tax etc just because he is an economic failure & disaster

    1 REPLY
    • It’s funny how this gutless wonder never mentioned anything about GST before the NSW election but the day after it’s big news.
      If it was really the right thing to do for the country why wait until now the bring it up if not to help their buddies in liberal NSW. All the federal pollies are grossly over paid COWARDS.

  8. Tax the big end of town instead of licking their ar#* s all the time. Lets face it. It’s not as though Rhinehart and cronies can take their business overseas. The assets are here. Stop them from employing 457 visa employees and force them to pay their fair share of taxes.
    But that’s not what tge libs do. They have an agenda to force those with the least to pay more so that those with the most get richer. They will never change.

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