Tony Abbott has refused to rule out considering changes to the GST as part of his proposed tax white paper.
Mr Abbott has committed to a review of taxation if elected to Government but has refused to rule out considering the GST as part of that review.
HOST:
But is that quite clear a promise that Tony Abbott won't be suggesting GST goes into the tax review?
ABBOTT:
That certainly isn't part of our plans and as I've said the Commonwealth really doesn't own the GST…
HOST:
Is that a promise?
ABBOTT:
I know what you're trying to do David; you'll forgive me if I don't get into this game of allowing people to say 'the Coalition raises the GST'
HOST:
It's not a game, some people would say you have identified that promises are a key issue, so it's quite natural for people to ask what you're promising. So are you promising not to propose the GST will be in review?
ABBOTT:
We have no plans to raise it, that's exactly right.
[ABC ADELAIDE – 17 MAY 2013]
If he has no plans to change the rate, base or distribution of the GST, Mr Abbott should simply rule out considering the GST in his tax white paper.
If he does not, Australians can expect that the Liberal Premiers around the country will push for changes to the GST that will jack up prices for consumers and rip away services from smaller states like Tasmania and South Australia.
The Government opposes any change to the rate or base of the GST and the Government commissioned an independent review of GST distribution which found the current system of Horizontal Fiscal Equalisation works well.