Could a GST hike leave millions of pensioners worse off?

It might not be long before Australia sees a rise in the GST, with many government MPs throwing their support
Let's Talk

It might not be long before Australia sees a rise in the GST, with many government MPs throwing their support behind the tax hike.

The idea of making changes to the GST has been circulating throughout the government for some time now, with some Liberal Party MPs floating the idea of a 5% hike on goods and services.

If the government does go ahead with the hike, they’ll be facing an uphill battle against voters who are overwhelmingly against any changes to the current GST rate of 10%. One group they’ll surely face particularly strong backlash from is pensioners, who will be significantly worse off under the tax increase.

While other Australians will be compensated with a gradual increase in wages to balance out the GST increase, pensioners will have to survive on the same amount they receive from the government now. This effectively means the cost of living goes up and pensioners have no way to compensate.

This is even more worrying given that people on a full single Age Pension are already $1100 shy per year of what the Association of Superannuation Funds of Australia recommends to live a modest lifestyle. How are pensioners supposed to survive after a GST increase if they’re not getting paid enough as it is?

Pensioners aren’t the only ones who’ll be missing out under a GST increase, with research indicating all low income earners will be left out of pocket under the tax hike. The Australian Council of Social Service┬ásays some families will lose 7 per cent of their disposable income.

Many people are asking why the government isn’t considering pensioners in the proposal and how a hike in the GST will affect them.

So what will it take for the government to acknowledge seniors, and how much damage will it really do to older Australians?

Let’s talk.

Do you think the government should raise the GST to 15%? How would a GST increase affect you?

  1. Trish Daley

    Really? What a ridiculous question to ask, of course it is going to leave PENSIONERS worse off. For those of us trying to survive on the single PENSION it is near IMPOSSIBLE, the LIBERALS are doing everything they can to make life a living hell for PENSIONERS and they are succeeding.

  2. Trish Daley

    Really? What a ridiculous question to ask, of course it is going to leave PENSIONERS worse off. For those of us trying to survive on the single PENSION it is near IMPOSSIBLE, the LIBERALS are doing everything they can to make life a living hell for PENSIONERS and they are succeeding.

    • Christine Watson

      I agree! What a stupid question. I cannot believe anyone would ask that without thinking of the stupidity of it.

  3. Karen Somerville Webb

    One more thing after everything the pensioners have gone through.Most of them were born in World War 2,they struggled than ,this should be a time in there life for them to enjoy.(not STRUGGLING)

  4. Karen Somerville Webb

    One more thing after everything the pensioners have gone through.Most of them were born in World War 2,they struggled than ,this should be a time in there life for them to enjoy.(not STRUGGLING)

  5. David Bate

    If you don’t “work, save and invest” then this government considers you to be a “leaner, not a lifter”. That’s why they are engineering the inequity of shifting the tax burden from the wealthy to those that can least afford it. This should be of concern not only to pensioners but also those in self funded retirement.

    • Wayne Ferne

      If they dont work, save or invest David, Id say they’re bludgers, not leaners!!

    • Ruth Hourigan

      Wayne Ferne
      Why don’t you tell that to the 85 plus pensioners who never had superannuation and a lot who didn’t have the opportunity of a good education and the ability to earn big bucks. The ones who collect your rubbish or clean the street or clean public toilets. Or the single parents who’s partners have walked out on them leaving them to try and support a couple of children on a single wage. Are they all bludgers because they didn’t have the same opportunities as you did.
      You really do presume a lot.

  6. Bea Little

    On voting day people need to consider many issues the GST may not be taken to the vote by liberals. What they could do is force the states to increase the GST By cutting each state of fundings. The liberals have already tried to force this on the states. The funding that they are cutting back is for hospitals and schools. So in the next election people need to consider rising cost of hospitalization ( even private health cover will not be able to cover theses cost as is already happening ). The states will need to do something to make up the difference of the federal government cutting back money so it’s more than likely a GST will happen if liberals are back in. Medicare will be cut back further and the other one that pensioners need to think about is there homes. The liberals see these homes pensioners have as assets. They want pensioners to down size and live on the profits of the sale. The liberal government has had all these think tanks working away to come up with areas of cuts. Aged and pensioners have been a big target area that includes self funded people. So if the get back in then you can only wonder what these voters are thinking about.

    • Bea Little

      Wayne Ferne are you so blind maybe you need better reading glasses or maybe because your so self opinionated. I’ve stated facts nothing that hasn’t been written or said. If that doesn’t sit wth your liking then tough. Maybe you might consider what the future under liberals will be and what that future will be for your children’s children not just think about a self serving me attitude

    • Sue Todd

      Wayne Ferne paying for comments is a Liberal trait. Labor don’t need to pay me to rubbish the Liberals, I’m more than happy to do it free of charge.

  7. Libbi Elliot

    No matter what the compensation, it won’t be enough, this GST price hike will push everything from food to utilities and medical cost skyward, does anyone really think the Liberal Government is going to give you enough to cover the basics like food and what happens when you need a new fridge or washing machine ? We go back to eski’s and scrubbing boards?

    • Trish Daley

      Libbi there will be no compensation, there’re full of it if they think people believe their pathetic lies.

    • Libbi Elliot

      I think you may be right there Trish for this reason, I heard Morrison say on Foxtel, there is no need for large amounts of compensation but for now the rhetoric is that they will compensate

    • Lesley Seymour

      Yep, the compensation talked about is in the form of tax cuts !! Don’t think pensioners and low income families pay tax or very little

    • Rosemary Dunworth

      Exactly what I thought Libbi. Its a joke. How on earth is anyone on a low oncome supposed to live if they do this?

    • Sue Todd

      Lesley Seymour exactly. The worst off pensioners only have the pension of around $18,000. What’s the tax free thresh-hold? $18,000. Fat lot of goos a tax cut will do them

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