Tony Abbott must today reveal his true plans for the GST after Liberal elder Nick Minchin called for the tax to be jacked up.
Mr Minchin, who served with Tony Abbott as the Howard Government's Finance Minister, said today:
The GST, in terms of its rate and its scope, will have to be revisited in the medium term.
[AUSTRALIAN FINANCIAL REVIEW – 27 APRIL 2013]
This follows on from comments by Shadow Treasurer Joe Hockey last year, who gave the green light to the States to jack up the GST:
If you are going to have a discussion about changing the GST the States have to lead the argument because they are the ones that need the revenue.
[DOORSTOP – 20 JULY 2012]
The Liberal Party introduced the GST and now senior figures are openly pushing for the rate of the GST to be jacked up and for the tax to be applied to goods like fresh food and services like health and education, which are currently exempt.
Any such changes to the GST would hit families and pensioners hardest.
The Government opposes any change to the rate and base of the GST.
We already know that Tony Abbott wants to change the distribution of the GST to give more money to Western Australia.
The only way Mr Abbott could achieve a redistribution of the GST that made sure no State or Territory was worse off was if he jacked up the rate of the GST or broadened its base.
Mr Abbott has tried to avoid scrutiny of his position on the GST. Now Mr Abbott must reveal what his true plans for the GST are if he were elected to Government.