GST HIKE WOULD BE HARD SELL FOR WA
SO THE Federal Government is talking about raising the GST to 15 per cent. One report calculated this would cost the average family $4000 a year. This would presumably be offset by income tax breaks, some other government incentives and subsidies for low-income earners. But there is no guarantee WA would get a fair slice of the revenue generated by the huge hike. In March, WA was allocated 4.2 per cent of the GST pie. NSW gets 31 per cent and Victoria gets 22 per cent. Treasurer Mike Nahan predicted WA’s share would drop even more until we got virtually nothing from one of Australia’s biggest taxes, despite WA people paying out $6 billion in GST at 15 per cent. How will the Federal Government sell a GST hike to the people of WA? A cynical person might predict they will start at 15 per cent, reduce it to 12.5 per cent and tell us we are winners.