Push for GST increase rejected: Jim Chalmers reveals Government's decision
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A genuine sigh of relief escaped the lips of all Australians when the Treasurer stated that the Government has no plans to increase the Goods and Services Tax (GST).
Jim Chalmers commented on the Business Council of Australia's (BCA) Seize the Moment report–which had suggested the Government look at raising GST as part of a major tax review:
‘We don’t have any plans or intention to change the rate of the GST,' said in Canberra.
He did acknowledge that tax reform was on the table, as the Government had included several initiatives in their 2020 and 2021 budgets, with intentions to focus on multinationals, high-balance superannuants, compliance, cigarettes and Petroleum Rent Resource Tax (PRRT).
Apart from the significant tax review, the BCA report also urged abolishing stamp duty in favour of land tax and a more competitive company tax.
The lobby group reported that these substantial changes are necessary to prevent the erosion of Australian living standards and being left behind by competitors.
This is especially important, the group said, with the release of the Sixth Intergenerational Report (IGR) this Thursday, August 24–which is expected to reveal a greater ageing population, requiring more spending on aged care and support services.
The IGR will also project the swell of Australia’s population–which will supposedly reach 40 million. However, Aussies are also expected to have fewer children, which could reduce the income tax pool in the future.
Despite the rejection, Dr Chalmers was eager to open conversations about tax reform. Before the release of the October 2022 budget, he mentioned stage three tax cuts. Recently, he talked about changes to super tax concessions.
When asked about plans for tax reforms in the future, Dr Chalmers did not reveal a lot: ‘Our focus is bearing down the changes…that we announced in the May budget,’ he responded.
‘We’ve indicated a willingness going forward to make difficult decisions where…necessary to ensure that we can fund the kinds of services in particular that Australians need and deserve as our society changes and evolves,’ Dr Chalmers added.
On the other hand, the Government released the first draft of PRRT changes last Monday, which could bring in $2.4 billion over four years.
Dr Chalmers said this release is a test for the Coalition and the Greens: ‘If the Greens want the industry to pay more tax sooner, then they will vote for that legislation, and if the Coalition wants a model that best safeguards international relationships, and they will vote for it as well,’ he said.
You can watch Jim Chalmers’ statement here:
What do you think of this story, members? Share your thoughts in the comments below!
Jim Chalmers commented on the Business Council of Australia's (BCA) Seize the Moment report–which had suggested the Government look at raising GST as part of a major tax review:
‘We don’t have any plans or intention to change the rate of the GST,' said in Canberra.
He did acknowledge that tax reform was on the table, as the Government had included several initiatives in their 2020 and 2021 budgets, with intentions to focus on multinationals, high-balance superannuants, compliance, cigarettes and Petroleum Rent Resource Tax (PRRT).
Apart from the significant tax review, the BCA report also urged abolishing stamp duty in favour of land tax and a more competitive company tax.
Treasurer Jim Chalmers rejected the Business Council of Australia's (BCA) recommendation to increase the Goods and Services Tax (GST). Credit: Robyn Mackenzie/Shutterstock
The lobby group reported that these substantial changes are necessary to prevent the erosion of Australian living standards and being left behind by competitors.
This is especially important, the group said, with the release of the Sixth Intergenerational Report (IGR) this Thursday, August 24–which is expected to reveal a greater ageing population, requiring more spending on aged care and support services.
The IGR will also project the swell of Australia’s population–which will supposedly reach 40 million. However, Aussies are also expected to have fewer children, which could reduce the income tax pool in the future.
Despite the rejection, Dr Chalmers was eager to open conversations about tax reform. Before the release of the October 2022 budget, he mentioned stage three tax cuts. Recently, he talked about changes to super tax concessions.
When asked about plans for tax reforms in the future, Dr Chalmers did not reveal a lot: ‘Our focus is bearing down the changes…that we announced in the May budget,’ he responded.
‘We’ve indicated a willingness going forward to make difficult decisions where…necessary to ensure that we can fund the kinds of services in particular that Australians need and deserve as our society changes and evolves,’ Dr Chalmers added.
On the other hand, the Government released the first draft of PRRT changes last Monday, which could bring in $2.4 billion over four years.
Dr Chalmers said this release is a test for the Coalition and the Greens: ‘If the Greens want the industry to pay more tax sooner, then they will vote for that legislation, and if the Coalition wants a model that best safeguards international relationships, and they will vote for it as well,’ he said.
You can watch Jim Chalmers’ statement here:
What do you think of this story, members? Share your thoughts in the comments below!
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,coal etc overseas without demanding royalties from said products which would have supplied billion's in venue to the country for aged care, pensioners, schools inferstructure etc 
and don't forget Howard introduced GST the great saviour while multinational companies rape Australian resources for billion's in profit and no taxes payed 
