Increasing State and Federal revenue

[catsnknots]

How do you think it can be done? 

With personal tax rates going down and more services being promised how do you see the governments being able to afford all of these new promises and existing services? 

[cherry*135]

I think raising the GST is a good idea... money will go right to the states that actually pay for essential services

The GST collected has never gone back to the state it was collected in.  The Federal Govt collects it and distributes it. It has always been a bone of contention especially for  the major states.

JULIE BISHOP: Tony Abbott has said that he believes the State Premiers in the major states, and that is that Western Australia, Queensland, New South Wales and Victoria should get together and come up with a formula they believe is fair ensuring that the other States don’t miss out but come out with a formula that is fair. I understand that is precisely what the Premiers of Western Australia, New South Wales and Victoria are doing. They are looking at the formula and when the States can agree amongst themselves, well then that’s an opportunity for the Coalition should we be elected to government to talk to them about it... (ABC Perth Mornings, 12 August 2013).

[cherry*135]

If a wealthy person has to pay, for example, 12.5% GST on their purchase/services so does a lower income person.. The lower income person has to pay more for their, for example, petrol but they have a lot less disposable income than a person on a higher income.

[cherry*135]

Tony's Abbott's promise of fixing the roads, and being remembered as being Mr Infrastructure must be the biggest election promise in recent years.

How exactly is he going to fund that? Does he know how any millions/billions of dollars it costs to upgrade short pieces of road?

The Government has also allocated $115 million to provide 7.5 kilometres of upgraded highway and include two new interchanges ,

(small part of the highway near where I live..more needs doing.. some parts have needed doing 10 years ago.. still waiting.. there would be many areas in Aust with the same problems).

Does the Federal Govt pay for all the new  roads/highways or are the State Govt;s expected to match them $ for $? or contribute a large amount of the cost at least.?

Governments spending money on infrastructure does boost the economy at least.... more employment, building materials purchased etc.

I think anyone genuinely interested in how the economy works and doesn't know the finer details already, would benefit from doing a 101 Economics subject.

[cherry*135]

NSW (Sydney properties - high value)  & Vic  collect a huge amount of stamp duty from the sale of houses...money for jam...no effort and lots of revenue in return.

[just_me_karen]

Why even discuss raising revenue. It's not a problem, according to the Libs. The reason the budget didnt balance was all Labor's fault and had absolutely nothing to do with revenue write downs. They were irrelevant and treasury incompetent.

So, it'll obviously be all liberals fault should the budget not balance by the end of their first (and last) term.

[cherry*135]

They can cut more stuff out for low income earners.. like they abolished the super co-contribution. Lower the $18000 approx tax free threshold back to $6000

That will raise more revenue, who cares about low income earners anyway?

Personal tax rates were ridicuosly high. Over $60 000 incom the  tax rate was 45% about 10 years ago. The personal tax rates have not changed for the 2013-2014 tax year.

[polksaladallie]

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@the_hawk* wrote:

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@the_great_she_elephant wrote:

Well, Colin Barnett  wants Abbott to raise  the GS T - that should put a smile on everyone's face.

Mind you, having trashed our credit rating with his grandiose schemes, he  is pretty desperate for extra revenue.  I don't think Abbott can just go ahead and do it, anyway, it needs the consent of all the states as well.

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yes I believe it does need ALL states to agree, that shouldnt be that hard as its the states that get 100% of the GST they collect

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That is not really correct.  It can be changed in the federal parliament.

The finding: Like any tax the GST could be changed without the agreement of the states and territories.

The Coalition has said that if it wins the election any tax initiatives outlined in the proposed White Paper would be taken to a subsequent election. But at any time governments can change the GST legislatively. There may well be political challenges for a government wanting to change the GST, but if it can get legislation through Parliament it can make those changes.

http://www.factsfightback.org.au/could-a-future-federal-government-override-the-states-on-gst-change...

[cherry*135]

hawk - its the states that get 100% of the GST they collect

No, they don't, never have. It has always been a bone of contention. The federal Govt distributes the GST collected.

WA,NSW, VIC and QLD want the distribution criteria changed. 

[the_hawk*]

well polks my memory must be failing me, as I remember it when they first introduced the GST I believe they stated the safety to prevent anyone increasing the GST was that all states had to agree.

Now your your saying they can change it by just changing the legislation without any one having to agree

[polksaladallie]

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@the_hawk* wrote:

well polks my memory must be failing me, as I remember it when they first introduced the GST I believe they stated the safety to prevent anyone increasing the GST was that all states had to agree.

Now your your saying they can change it by just changing the legislation without any one having to agree

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Well, I'm not saying it, I am quoting.  Read the link I gave and the following one.  I knew it didn't sound right when Abbott kept saying it like a broken record. (If you say something over and over, some people will believe it and not look into it).

http://www.theage.com.au/federal-politics/fact-checker/is-kevin-rudd-right-that-gst-could-be-changed...