Australian Politics Nah… The Government Wouldn’t Do That!

The Goods and Services Tax: G.S.T.

The G.S.T. is a Value Added Tax (V.A.T.). It came to Australia in 1999, and in the year 2000 it became enmeshed within the Australian everyday practice of both small business and personal living expenditures. The G.S.T. currently sits at 10% for most goods and services sales that is applied to the end user.

With its inception, Australians were assured by the then Howard Government that the G.S.T. would have limited affect on everyday Australians at the checkout, being primarily a tax on luxury items.

Prime Minister, Mr. Tony Abbott placed himself into a precarious position during his September, 2013 electoral campaigning as he promised the Australian people that ‘under a Coalition Government there would be lower taxes’ and that Mr. Tony Abbott himself, should he become Australia’s next Prime Minister (2013), proclaimed that he would not raise the G.S.T.,.

This all came about after Mr. Kevin Rudd bluntly accused Mr. Tony Abbott of such intentions should he win the Prime Ministership.

Today, what appears to be unraveling concerning this proclamation by the then opposition leader is a honey pot situation placed onto the states by Tony Abbott, in an effort to starve them out. By placing significant media pressure onto state governments, the Liberal National Party (LNP) sought to enlist LNP state level governments to front the cameras and demand that the Federal Government raise the G.S.T.,.

The LNP federal Government went about this in much the same way they have operated since the 2013 federal election; they insisted that Australia had a ‘budget emergency’ and that spending to the states would be curtailed due to that conflated ideology. They then insisted that should the states desire to maintain roads and other infrastructural necessities, they could sell off their state level government owned assets. If they did this, then the federal government would send some money their way.

I think we can be pretty certain that South Australia and it’s Premier, Mr. Jay Weatherill will not be privy to such a backhanded act of monetary kindness from an extremely militant coalition intent on obliterating all the great things that Labor has bought to Australia and Australians.

Whilst Victoria revels in their victory over the 1st term LNP state government, whose political position was poisoned by not only the current Prime Minister, but also the Foreign minister, Victorian Labor are also seeing a retraction of funds promised to the former LNP state government by Tony Abbott for infrastructure growth. Victoria’s state government will become an orphan amongst the state throng with their hand out asking Prime Minister Tony Abbott; Please Sir, may I have some more??

Many a time has Mr. Joe Hockey, the now federal Treasurer, stated that ‘if the states desire to raise the G.S.T., then we will look at it.’ However, the states have held out on the G.S.T. demands, with a few publicly relating their displeasure at such a move by the federal government.

At the beginning of November, 2014, during question time, PM Abbott finally admitted his governments intent to raise the G.S.T.,. It looks as if the federal LNP were the ones who got their hands caught in the honey pot because the states refused to be their shield on this extreme measure set to further take from the Poor and give billions to the rich.

With MYefo due to be released today, I do believe that Treasurer Joe Hockey’s promise to deliver surpluses each year under a coalition government, will be another broken promise from an already wiped out, fickle yet frugal organisation orchestrating a poor rendition of a Democratic government. What is highlighted is the fact that as a progressive society, Australia’s regressives stand out like Udders on a Bull.

The call to raise the G.S.T. will become the federal LNPs 2015 mantra, they will say; If the states wish to raise the G.S.T. then we will of course listen and rather than a rise of 2.5%, because things are far worse than we first thought, the G.S.T. will be raised by 5%. OH… its all labors fault!

Look out for the 15% G.S.T. in 2015 under a federal Liberal National government and do believe that this tax will encompass many more items than the current Howard 10% G.S.T. does.

During the Howard debate about introducing a G.S.T. Australian’s were warned by New Zealander’s not to do it, ‘do not allow it’ they echoed in unison. The G.S.T. is an insidious tax that knows no bounds, the $100 Lamb roast is no longer a laughing point for LNP politicians to use to belittle other parties, it is a scary reality just around the bend of Australia’s future tax system for all goods purchased, not just half of them. Not those under the LNPs Free Trade Agreements though because no-one knows the ins and outs of any of those, but will save details of FTAs for another article.



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