An increase to the GST? :O

[i-need-a-martini]

It was bad enough to scrap the wholesale tax in favour of the GST, but now top of the list for LNP tax reforms will be increasing the GST and taxing those things that weren't taxed before like food, education and health.

http://www.smh.com.au/opinion/political-news/abbott-gst-is-back-on-the-table-20130517-2js0b.html

And he has already broken his first promise and he hasn't even landed in the job yet - the tax cut to company tax is gone. Aren't 'broken promises' what the opposition have based their entire campaign on? ?:|

[vampire-teddy]

well if you are in Qld you will have even another flood related tax.  this is from the same Lib Premier who would have no part of a flood levy.  One who also  rubbishes Anna Bligh for selling Govt assets and is doing the same himself.  If the fed LNP does as good a job as the Qld NLP, god help us.

[i-need-a-martini]

People that pay more GST are people on higher incomes that buy more goods that are more expensive.... (in general) 

Good theory cat but the fact is that those on higher income would miss 10% less than those on lower incomes. 10% to someone scraping by on $35,000 is a major chunk that could mean that difference between paying their bills or not. 10% to someone on $135,000 might mean they have to forget about getting the inside of their house repainted this year.

The old wholesale system worked. Expensive, luxury goods were highly taxed. Everyday needs were not. Removing the wholesale tax made luxuries cheaper (for example perfumes where there was a drop just under 13%). And GST increased the price of basics like some food, books and as we all know tampons by 10%.

As my husband and I earn good money, the introduction of the GST meant much more money in our pockets. But my pensioner parents were hit hard as were most people on modest means.

My parents live simply and food and health are their biggest expenses. So if the GST is increased, now they will be hit even harder.

By all means tax ME a higher amount through whatever tax. I can afford it. But why increase a tax that affects those at the lower socio economic end the most?

[serendipityricho]

The wholesale tax was open to misuse by small business.

The tax was paid after a transaction was made.

Goods that were not sold--bad  stock--shop lifted etc or sold

for cash-no docket issued-------no tax paid.

Now all the tradies cash in hand jobs do pay the GST when

making a purchase-just a thought..................Richo.

[i-need-a-martini]

The wholesale tax was open to misuse by small business.

The tax was paid after a transaction was made.

Goods that were not sold--bad  stock--shop lifted etc or sold

for cash-no docket issued-------no tax paid.

Now all the tradies cash in hand jobs do pay the GST when

making a purchase-just a thought..................Richo.

Huh? Where do you get that info from? 

WST was paid for the supply of all goods. There was little way to misuse is. It was brought in simply because the tertiary sector wasn't being taxed in the same way. It wouldn't have been difficult to amend the tax to include the service industry.

For goods purchased, wholesale tax was instant and part of a suppliers invoice. So if my shop bought a box of perfume the invoice would read something like this:

Cost of Goods:$3,000.

Wholesale Tax at 30%: $900.

Total due: $3900.

As a retailer, I paid WST whether or not the item was shoplifted.

And I am still scratching my head over the argument that cash in hand jobs are more accountable under GST. It makes no difference at the transaction end. If I pay a tradie cash then NO tax is paid same as before.

As for whether the tradie paid wholesale tax or GST when purchasing materials for my job makes no difference - his end price would all be the same. Except now (depending on his trade) he would be adding a GST to his invoice to me that I didn't have to pay before.

[i-need-a-martini]

Sorry - that was meant to say:

The GST was brought in simply because the tertiary sector wasn't being taxed in the same way. It wouldn't have been difficult to amend the WST to include the service industry.

[serendipityricho]

Example-had a small one man business with the wholesale tax.

A  competitor had a tax exemption no -and paid the tax on sales

he made at the end of the month--not the cash sales on the side.

Making him 15%  better priced.

Claiming the tax back from the supplier -after selling to a Govt dept

was a nightmare.--the GST is a more level playing field

Re the tradies -i meant when they buy new items-not what

they purchased to do a cash job................................Richo.

[i-need-a-martini]

If a competitor had an exemption to WST then he would have the same exemptions apply to GST. And he still wouldn't be paying tax on the cash sales either way. 

Claiming back any tax from a government department is going to be slower. whether that tax was WST or is now GST you've paid to your service providers makes no difference.

And as for the tradies - as noted above, it makes no difference whether the tradies paid WST before if they pay GST now. For most tradies they paid a tax either way. The only people who lose out to tradie prices are consumers as labour in many services were not taxed previously.

[serendipityricho]

Martini--we are on different trams--im gone.....................Richo.

[*mrgrizz*]

I used to go to coventrys wearing overalls.

I used to get the tax free price that they supplied to mechanics etc......no idea where they thought I worked

[lightningdance]

Martini--we are on different trams--im gone.....................Richo.

.

They are now wanting to go back in time. Back in time to a tax system that was unwieldly & fragmented.

I suppose anything is better than a tax review by a conservative govt. eh??