@45bushy wrote:
he made a good point of removing the provisional tax though..thats a sheepload of money back into the economy
Factcheck say this (but i don't take what they say as gospel)
The verdict
It is likely only $60 billion of the $70.1 billion tax receipts forecast for 2013-14 will be collected in instalments.
Experts agree if the policy works, companies may gain some short term benefits through interest income earned on additional bank deposits or investments.
But Mr Palmer makes many assumptions that the additional disposable income during the year will be spent, invested and used productively to generate GST-attributable transactions.
Economic theory studies and historical data show any kind of fiscal stimulus in a low-unemployment economy like Australia's is unlikely to create much impact on the economy, let alone five times.
If it does have an impact, international studies suggest the maximum times the money would change hands in the economy would be twice.
This means the maximum extra GST revenue would only be about $12 billion - not $35 billion.
The studies ABC Fact Check examined also show it is permanent stimuli that create an impact, not temporary or administrative measures such as delays in tax payments.
Mr Palmer's claim is improbable.
