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NewsMEDIA RELEASE: OLDER AUSTRALIANS OPEN-MINDED ABOUT A CHANGE TO THE GST: 2 NOVEMBER 2015
MEDIA RELEASE: OLDER AUSTRALIANS OPEN-MINDED ABOUT A CHANGE TO THE GST: 2 NOVEMBER 2015

MEDIA RELEASE: OLDER AUSTRALIANS OPEN-MINDED ABOUT A CHANGE TO THE GST: 2 NOVEMBER 2015

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The news is abuzz with talk of increasing the GST to 15% and close to one in two older Australians agree it is time for reform, according to a survey.

While Cabinet Secretary Arthur Sinodinos is concerned some states may be politically hostile to change the feeling is not necessarily representative in the community.

Out of 20,000 over-50’s surveyed by the FiftyUp Club in recent months:

·      17% believe the rates should be increased above 10%;

·      17% believe the base should be broadened to include more items that are currently exempt; and

·      Another 12% would like to broaden the base and increase the rate.

However, another 46% do not want a change in the GST at all. These are the group of older Australian’s that the government needs to have a conversation with.

Such a fundamental change to the tax system may require other trade-offs in the tax system to compensate Australians.

One change many older Australians would like to see is a change to costly tax concessions on superannuation, which have broadly benefitted higher income earners.

FiftyUp Club research shows almost half of the over-50’s think tax concessions for people with large super balances should be wound back.

“The GST debate needs to be had openly and honestly with the people and while the FiftyUp Club survey indicates older Australians are even split on the need for any change a significant number are open to conversation,” said FiftyUp Club spokesperson Christopher Zinn.

 

MEDIA ENQUIRIES:

Jackie Levett, FiftyUp Club media contact

EMAIL: Jackie@fiftyupclub.com

PHONE: 0434 995 611 

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MEDIA RELEASE: OLDER AUSTRALIANS OPEN-MINDED ABOUT A CHANGE TO THE GST: 2 NOVEMBER 2015

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Tamas
Tamas from NSW commented:

Increase all income tax, company tax + the GST to 30%. No more problem for THEM. 

Victoria
Victoria from NSW commented:

Heard on TV last night courtesy of Albo, that the top millionaire earners paid a TOTAL tax of $82 in 2011 ...what a disgrace! Whichever Govt. allowed that should be dismissed immediately ....so totally unfair to the workers who are paying a large portion of their income as PAYE taxpayers....fix this first before raising GST then maybe Govt will find they don't have to raise it at all.... 

Victoria
Victoria from NSW commented:

I'm more worried about the changes to UPP entitlement regarding Centrelink benefits. The Govt. is retrospectively decreasing the agreed UPP component from 50% to 10% which will see many older Australians who have paid for their superannuation from post tax income for many years, lose their whole or most of their Centrelink age pension. This will affect modest income retirees who will see their benefits decreased or cancelled totally with little or no notice ...effective January 1 2016 . ...a big loss to their spending capacity and comfortable retirement plans . Why are the politicians still enjoying their huge payouts and benefits while changing the rules for modest income retirees? 

Pam
Pam from VIC commented:

how about raising it by 2.5% 

Someone
Someone from VIC commented:

no change to gst I am retired where can I get the money to pay extra 

Les
Les from NSW commented:

It has been calculated that if the GST is raised to 15% then the price of a new house in Sydney will rise by $50,000.00, that will put an end to young couples trying to purchase a home in any of our capital cities. The price of fuel will rise so transport costs will rise and seeing that the goods you buy are transported from the manufacturer or importer to the supply chain of the retail outlet and in turn transported from the distribution point to the retail store then the selling price will rise by the 5% GST hike plus the additional costs incurred in the transportation of the product, so the customer will pay more than the additional 5% tax grab. It was announced the other day that a range of pain killers have been taken off the PBS for pensioners so they will pay around three times the price then an extra 5% GST. This coupled with the building of Tony's airport at badgery's creek would seem like this government is in suicide mode and will last only one term. 

margaret
margaret from NSW commented:

For those renting the problem that will fall under the radar is, that whilst they do not pay GST on rent, their landlord will pay extra on all costs associated with the running of the premises.Of course the landlords would only lift the rents by 89 cents or so, per flat, wont they?. Would not think of adding another $10 would they, thus meaning all compensation for our poorest would be absorbed by an item not even under consideration? Would this worry our Pollies who only worry about how much they can get away with, and having done so, would be reluctant to revisit and review any unfairness?. Dump, run, and hope your victims have such a short memory they will vote for you next election is how they usually operate. 

Gertraud
Gertraud from ACT replied to margaret:

As a landlord I can assure you that rents are driven by supply and demand, rather than retention costs. I own a unit in Canberra and due to the public service sackings as well as an over-supply of new units, I had to reduce the rent by 30%, or have it unoccupied. You will find similar reductions in rent have taken place in Perth due to the end of the mining boom. Even if rentals became GST-able, only landlords with a turnover of $75,000 would be required to register for GST. Landlords subject to GST would have to lower their rent to keep their GST inclusive total rent at a competitive level. For example, a landlord not subject to GST is charging $300 per week, another landlord would also be limited to a GST inclusive $300 per week for a like property, but would have to pay $27.30 to the government as GST. 

margaret
margaret from NSW replied to Gertraud:

Thank you for your reply Gertraud. Yes I agree rents are often driven by supply and demand not actual increases in landlords costs. I have no concern as to GST being put on rents but rather that the increases will be on the landlords outgoings , rates, water, lawn mowing, elec. in common areas etc. and that will not be taken into consideration when rent allowance is calculated, and those extra costs will cause rent increases greater than the actual cost to landlord, ESPECIALLY if supply and demand made it feasible. Sorry Gertraud I did not make my meaning clear, and thank you again for your reply. 

Denny
Denny from NSW commented:

No change to GST 

Geoff
Geoff from VIC commented:

I have heard that a 15% GST across the board would increase the average household costs by around $3000 pa. Increasing the GST is the easy cop out, and is a regressive tax. The morally correct thing to do is to take on the tougher tasks to chasing those that could and should increase their tax input, namely large global corporations paying their fair share, high personal income earners paying their fair share (a "Warren Buffet" type tax), revise superannuation contribution tax discounts, revise family trust tax concessions, revise landlord negative gearing allowances, etc. Supposedly, an increase in GST will involve some tax compensations - how are they going to compensate self funded retirees, or low income earners? 

Someone
Someone from NSW commented:

if the gst is increased to 15% WILL THE OLD PENSION BE INCREASED BY 5%? MICHAEL 

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