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]

Today - 20 Sept

Tony Abbott dismisses fresh push to re-examine the GST

TONY Abbott has moved swiftly to reject new calls to consider increasing the goods and services tax, as state and territory leaders pushed for a re-examination of the consumption tax. 

...But a spokesman for the Prime Minister said today “the GST won't change, full stop, end of story”

....West Australian Liberal Premier Colin Barnett, who has publicly called on Mr Abbott to “step up to the plate” and address the insufficient revenue pool from the GST. 

..”The ACT's Labor Chief Minister Katy Gallagher backed Mr Barnett's call for a national debate about possible changes to the GST. 

....Queensland and Victoria did not back moves for a change to the GST, although Victorian Premier Denis Napthine  said he wants his state to get a larger slice of the pie.

“We are not arguing for a raise in GST. Our argument is to get a fair share,” he told reporters. He said Victoria currently only gets 90 cents back for every dollar paid by Victorians.

Acting Queensland Premier Jeff Seeney said the Newman government won't push for increasing the tax.

"The Queensland government doesn't agree with that at all," he said.

"We've got no comment to make (other than) it's certainly not something the Queensland government has considered."

...South Australia has “no enthusiasm” for increasing the GST and says any move to change how the revenue is distributed among the states would be strongly opposed. 

http://www.theaustralian.com.au/national-affairs/tony-abbott-dismisses-fresh-push-to-re-examine-the-...

[the_great_she_elephant]

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.

Well, that does surprise me, Polks. I distinctly rmember John Howard reassuring us all that any future rise in the rate was virtually impossible because it would take the consent of every single State and Territory. Surely (gasp) he couldn't have been guilty of uttering a terminological inexactitude?

[lurker17260]

That was my understanding too polks, but I wasn't game enough to say anything without backup

I always understood that the current legislation doesn't allow changes to the GST without states agreement.  But seeing as it's federal legislation, as long as they can get it through federal parliament they can change it to whatever they like/can get up.

[polksaladallie]

---

@lurker17260 wrote:

That was my understanding too polks, but I wasn't game enough to say anything without backup

I always understood that the current legislation doesn't allow changes to the GST without states agreement.  But seeing as it's federal legislation, as long as they can get it through federal parliament they can change it to whatever they like/can get up.

---

IMO the states would love to increase it, but will not say so.  I predict the momentum will increase, and the Lib govt will find a way of excusing any change by calling it a "non-core promise" or "we didn't realise what a dire state Labor left the kitty in", ot something else.

[catsnknots]

---

@am*3 wrote:

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. 

---

All the GST money goes back to the States... the Federal Government do not keep any of it..... 

[catsnknots]

Any government can change anything with legislation if they have the numbers......  that is how it has always been.. no surprises there. 

so back to the question... how do you increase revenue while reducing personal tax? 

[donnashuggy]

I think that GST needs to be increased.

[cherples]

---

@lurker17260 wrote:

That was my understanding too polks, but I wasn't game enough to say anything without backup

I always understood that the current legislation doesn't allow changes to the GST without states agreement.  But seeing as it's federal legislation, as long as they can get it through federal parliament they can change it to whatever they like/can get up.

---

Politifact and other fact checking sites checked the claim in the lead up to the election and reported that it can be changed in parliament without any approval from states.

[cherry*135]

---

@catmad*2013 wrote:

---

@am*3 wrote:

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. 

---

All the GST money goes back to the States... the Federal Government do not keep any of it..... 

---

I never, nor did anyone else suggest in this thread that the Federal Govt keeps any of the GST collected.

See the above post of mine you quoted...and note the word distributes. The Federal Govt distributes the GST collected amongst the states. The states do not get back all the GST they have collected and never have.  NSW. for example, might collect $1m but $100 000 of that may go to Tasmania or SA.

There was a review of the distribution of GST released in 2012. WA, QLD, NSW & VIC want the distribution fformula changed.

From my post 11:

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).

From my post 21:

 Victorian Premier Denis Napthine  said he wants his state to get a larger slice of the pie.

“We are not arguing for a raise in GST. Our argument is to get a fair share,” he told reporters. He said Victoria currently only gets 90 cents back for every dollar paid by Victorians.

South Australia has “no enthusiasm” for increasing the GST and says any move to change how the revenue is distributed among the states would be strongly opposed.

(  NOTE: SA gets more GST than what it collects.as other smaller states).

[cherry*135]

---

@catmad*2013 wrote:

Any government can change anything with legislation if they have the numbers......  that is how it has always been.. no surprises there. 

so back to the question... how do you increase revenue while reducing personal tax? 

---

Personal income tax hasn't been reduced this tax year. Probably no intention to reduce it again next tax year either.

How has the Govt (which ever party) been increasing revenue for the last 10 years or so?

- cut out the education rebate

- put a income cap on FTB 

too many to list.

HAS THE NEW PM ANNOUNCED AT ANY TIME HOW HE IS GOING TO PAY FOR ALL THE NEW INFRASTRUCTURE HE HAS PROMISED TO BUILD?