Comment: Since most of the countries who have introduced this type of tax have a very large black economy, the burden of paying tax, falls entirely on consumers - self funded retirees, pensioners, unemployed and the wage earner.
This aspect has been ignored by this Federal Coalition government yet the most vulnerable in our society, the workers and disadvantaged are to be driven into poverty to make the GST work.
Small business must now protest against this tax or face financial ruin either through punitive compliance costs including the extra paper work for the purposes of money tracking, -or non-compliance (black economy by default or by choice) exposing people to huge fines when caught.
Basically the GST is a new tax added onto the old complicated tax system which remains in place. Part of the hard sell campaign was a new tax system to replace the old complicated tax system we had, that remains in placed still. ( prior to GST legislation) Not True blatant lie.
Basically the GST applies to goods and services that were never ever taxed before as the old sales tax only applied to a select number of mostly luxury goods and not services.
(Luxury items, the well off could afford under the old system.)
GST is a major tax increase, - an additional tax - not a replacement.
Already the Feds plan to cancel the grants to the states for Hospitals, Roads, Education and the like and will diminish their responsibility to you the taxpayer who happens to live in a state and pays Federal income tax from wages and salaries. ( Amounts to effective double taxation)
"Nothing exists to stop the GST or Income tax from rising".
The fraudulent Fed plan to collect tax for the state to cover all state funding via GST while the Feds escape with the income tax, putting nil back into the hospitals and the like separates their responsibility to the taxpayer and voter.
1/The stated case for a rise in GST was that 2/3 majority of both houses of parliament would be required for the GST to increase, being a majority of all states and majority of the house of representatives (Liberal & Labor) seems very hollow as the states income will be derived from GST so they will require an extra increase at some time to keep their budgets in the black or the only alternative is to cut back on important spending for health and infrastructure.
2/ The Feds members will merely rubber stamp GST increases to protect their own Federal budgets. Can anyone identify a State tax that is to be axed on July one. As promised.
Webmaster + J.B. 27/02/2000
18 April 2000
See the Australian Competition & Consumer Commission response to Labor opposition call on alleged misleading Government GST advertising campaign so far.
Australian Competition & Consumer Commission web site - Look for Media Releases on left blue menu and check 18/04/2000. www.accc.gov.au
N.S.W. with its larger population will be subsidising other smaller population states like - examples -Adelaide and Tasmania.
If you don't fight for yourself, fight for your children's future.
As you can see, your whole life can change at the stroke of a pen.
Small Business are suffering a consumer backlash
21st of August 2000.
Small business is bearing the brunt of the GST with consumer confidence at an all time low, with retail sales down now by up to 40% in some retail areas of the economy across Australia.
What people don't realise is that once the small retail shops falter, prices will go up when large business has less competition to deal with and this has happened oversea's when this type of tax was introduced.
Where has the economic sunshine gone, promised before the 1996 election by our Prime Minister.
GST Kills Consumer Spending
The Daily Telegraph 2nd September 2000 page 10.
States consumer spending after 1st July has been the biggest consumer plunge for a month in Australia's history.
The GST has caused a devastating drop in retail trade, when consumers are not spending at the large retail outlets, small retail is suffering even more as they can not buy at discounts like the larger retail outlets and super markets therefore prices are usually higher across a range of goods.
Small retail customers are usually selective or spur of the moment purchasers mostly from the local area.
Interest rate rises also are causing a slump to the real estate industry coupled with the GST, agents are finding the market very flat, with commissions down.
Further interest rate rises may be imminent as petrol prices are causing increased transportation costs increasing inflation.