Wednesday, October 12, 2011
Fair Tax Scheme: Lift the GST
Moreover, accountants, Australia accounting software providers and the common Australian citizens stated that the lifting of the GST rate could help make the Australian tax system fairer.
The Goods and Services Tax (GST) is a broad sales value added tax of 10% on most goods and services transactions in Australia.
According to yourmoney.com.au survey, data showed that there is a strong demand for the simplification of the tax system. Some common suggestions were the introduction of a low flat rate of tax, lifting of the GST, and compensation of low income earners – who are typically spending a much bigger percentage of their money on basic goods and services.
According to a research by CPA Australia, one of three professional accounting bodies in Australia, if the GST is increased to 15 or 20 per cent and along with cuts to business and personal tax rates, this would improve the economy and raise the standard of living.
Moreover, according to the Australian Industry Group, increasing the rate of the GST - or a broadening of its application to more goods and services is a way to pay for the removal of inefficient state taxes.
The Gillard government has flatly decided changing the GST. They even declared it off the discussion at the recently held week's two-day tax summit in Canberra.
The 2-day Federal Tax Summit in Canberra held last October 4 and 5, 2011 had focused on its own agenda, including helping businesses hit by the two-speed economy. Moreover, Prime Minister Julia Gillard and Treasurer Wayne Swan have marked changes for businesses squeezed by the patchwork economy, with plans to alter tax treatment of losses.
The summit was attended by 184 people, which includes delegates from business, unions, community groups, and state and federal politics. It was held as part of the post-election deal with country independents to support Ms. Gillard's minority government.