News

Previous Next

GST campaign update 2020

WESTERN AUSTRALIA IS STILL BEING DUDDED ON GST FAIRNESS

The GST (Goods and Services Tax) was introduced by the Howard Government in July 2000, replacing the previous federal wholesale sales tax system, and was designed to phase out a number of State and Territory Government taxes and duties such as Payroll tax, Transfer duties (Stamp duties) and Insurance duties.

Fast forward to 20 years later. We are still paying Payroll tax, Transfer and Insurance Duties, in addition to the GST on most goods and services. In WA, the revenue collected from these 3 taxes is approximately $5Bn each year, while at the same time, WA is giving approximately $3.5Bn of our 2020/21 GST revenue to other states!

These 3 state taxes are insidious and they discourage employment (payroll tax), substantially increase the cost of trade, especially the cost of property and vehicles (transfer duty) and add to cost of insurances (insurance duty).

But what about the Federal Government’s “GST Fix” of 2018?

The “GST Fix” of 70c (rising to 75c in 2025) in the dollar minimum per capita distribution to Western Australia is achieved by the Federal Government making up the shortfall in Western Australia’s GST share by a separate payment.  

But the 70c in the dollar GST floor does not take into account the huge amount of GST revenue that Western Australia has lost in the past 20 years.

And Western Australia will be missing out on 30c in the dollar of its per capita share which is approximately $2.1Bn per annum. Over 8 years that is $17 billion which could go to reducing Western Australia’s massive debt and/or improve the provision of infrastructure and services.

The so-called “GST Fix” also does nothing to reduce the State’s reliance on Payroll tax, Stamp Duty and Insurance Duty, which are insidious taxes that increase costs of business and housing, and have negative impacts on employment.

The Western Australia Party calls for “GST Fairness”, which is an immediate change to GST allocation so that WA receives 100% of its per capita GST revenue share. Once “GST Fairness” occurs, the Western Australia Party calls for Payroll tax, Stamp Duty and Insurance Duty to be abolished to save costs for business and improve employment in Western Australia.

If you want more jobs, more action on climate change and cheaper transaction costs for residential housing...

VOTE 1 for the Western Australia Party.  We will fix the GST and claim back our missing billions!

 

Image
A  P O L I T I C A L  P A R T Y  F O R  W A

© 2020 by Western Australia Party

Search