The Minister for Financial Services & Regulation, Joe Hockey, today said Bob Carr's claim that the $50 Back-to-School allowance is aimed at offsetting the impact of the GST, is a misleading and mischievous stunt.
"Education is GST free so no matter what schools may charge families no GST will apply.
"Under the GST package, which starts on July 1, the average Australian family will be $40-50 a week better off.
"What is more, under the tax reform package, 80% of Australians will pay income tax of no more than 30 cents in the dollar.
"The impact of the GST is positive for Australias families. It doesnt need Mr Carr's feigned generosity to kick in.
"Besides, why is the $50 allowance going to the rich? Why isn't it means tested?
"Isn't it better to give to those most needy and spend the rest of the $55 million on better facilities for schools, hospitals and law and order than hand it out as middle class welfare?
"Bob Carr came out as a big supporter of the GST when he signed an agreement with the Commonwealth which gave all GST revenue to the states.
"NSW is set to receive many billions of dollars in tax revenue from the GST each year. So why is he trying to score political points against the new tax system?