GST rate increases – what are the Labor, Coalition, Greens’ and Independents’ positions?

Australian Retailers want to know!

UPDATE

The response from the political parties, other than the Green’s and Senator Nick Xenophon was as expected underwhelming.

· As one reader put it, “…you probably caught them all with their hands in the GST cookie jar”.

Any thoughts on GST, Sales Tax or any other retail price cost moves are hot potatoes but the Australian retail sector is not naïve and knows that the major parties have to consider some form of retail tax increases to pay for the debt incurred supporting the retail sector during tough times.

· All that Australian retailers’ are asking for is some honesty.

It is obvious that all main political groups are eying an upward revised GST as the way to bring down the debt plus funds to service proposed new education and health initiatives.

A GST or other consumer based tax increase probably inevitable - maybe hidden within the current tax review under another name?

Australian retailers deserve to know Party GST or other consumer tax positions well before the next election – Australian retailers do not want nasty ‘GST’ type surprises post the next election.

The RETAiL Alert Group is asking all sides of politics for their views including State Premiers – Australian retailers want to know who to support and on what basis, they need and demand certainty.

· If and when a revised GST occurs maybe it is time to consider a two tier tax, one for basic needs and services, one for luxury and non-essential goods and services.

· It is anticipated that there will be pushback on commenting – we will keep lifting the visibility until we get satisfactory answers; retailers need certainty especially luxury and non-essential goods and services Australian retailers’.

We will be contacting politicians and retail industry sector associations to obtain views and current, proposed positions.

As already said at least the Australian Greens have a clear policy on the GST.

Incorporated in the Australian Greens Economic Policy are the following 2 principles:

· The Goods and Services Tax (GST) is unfair, regressive and places an unfair burden on individuals and small business.

· Progressive taxes such as income taxes are preferable to regressive forms of taxation such as the GST.

In view of this it is difficult to imagine the circumstances in which Senator Brown and his colleagues would support an increase in the current rate of the GST.

Independent Senator Nick Xenophon is also against any increase in the GST.

We are still waiting for responses from the ARA, NRA, ANRA, the Government, Opposition and other Minor Parties.

In the UK Alistair Darling, the Chancellor, risks turning the recession into a depression, if he puts up the tax, as planned, from 15% to 17.5% on January 1 2009, according to Professor Blanchflower, a former member of the Bank of England Monetary Policy Committee.

TESCO is in a long line of UK retailers asking for a delay in increasing the UK VAT (Value Added Tax) (Australia’s GST) from 15% to 17.5%.

Governments internationally are struggling to counter the debt loads created by the Global Economic Crisis – increasing taxes on retail and services to service massive national debts in their budget cross hairs; Australia is no different.

OK so we have caught them all with their hands in the GST cookie jar – but all Australian retailers’ want is some honesty, not post election nasty surprises.

The RETAiL Alert Group will continue to pursue this matter with all the Australian Political Parties and retail sector industry associations to get clear policy GST directions for the Australian retail sector prior to the next election.

We are interested in obtaining readers’ views and retail sector industry associations’ views on this matter; email GST rate increases?

Tony Standley

Principal
The RETAiL Alert Group (Australia)
Mobile +61 (0)41 924 0497
e-mail info@adsass.com.au
Fax +61 (0)2 9987 0633
Website http://www.retailalert.com.au

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