GST HIKE WOULD BE HARD SELL FOR WA

Southern Gazette (South Perth) - - Opinion - - Rick Lee, Editor

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.

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