LONG FACES OVER GST... SO LET THE BLOODY STATES COLLECT AND SPEND THEIR OWN!
Four-time Walkley Award winning political commentator and Churchill Fellow, has returned to the fray over concern that the integrity of news dissemination is continually being threatened by a partisan media.
The unravelling of John Howard’s GST idea was predicable simply because VAT/GST is an easy mark for raising taxes further. The trouble is that centrist Federal governments like to hold the guiding reins on State expenditures and when a rise in the GST becomes economically necessary, as it has in every other nation, it never happens here.
The reason it can never happen here is due to endless State elections and a disproportionate allocation, as is the case in all States. In an election year no incumbent State Government will agree to a rise.
Yet the original legislation requires that ALL States must agree to a rise or a reduction... and that will never happen!
WA Premier, Barnett. A broken GST promise by Turnbull is likely to lose him this weekend's election
Western Australia’s highly volatile minerals economy requires a variable rate of GST return but there is resentment in other States that they should be paying for any increase, and SA and Tas bitch about their over allocations being reduced, so good ol’ WA now gets a paltry 30c in every the dollar it raises through its own GST. But that 30c was framed in a long-gone mining boom.
Currently there is an inducement for SA and Tas to continue with anti-development policies, albeit acceptable to voters, because other States are forced to pay for their Green excesses.
Tasmania's Jacqui Frog.
Energy alone is but one example of the GST anomaly. Tas locks up rivers of hydro energy that sit there waiting to be exploited but some rare frog is always in the way. SA is ideologically focussed on renewable energy and has conned Vic into supplying base-load power so it can concentrate on ineffective wind turbines and solar power.
This farcical situation is exacerbated by a new Labor Government in Vic that is also besotted with renewable energy and is in the process of closing existing coal-fired power stations. Blackouts will increase. And there is still an unfounded fear of safe, clean, renewable nuclear power, while energy prices go through the roof.
And of course the white Aboriginal activists fortuitously find sacred sites at every proposed development.
The only way the egg can be unscrambled is to hand the collection and spending of GST over to the States. If there is an electoral cost in raising the tax, then let the electoral combatants pay for it in votes. The States could even independently reduce the tax for electoral advantage. It is the States’ money, and they have the infrastructure in place to collect it, so why should NSW be paying for the spendthrift morons’ excesses in Tas and SA?
At the moment there is only ONE birthday cake and unless it is evenly divided (which it’s not) there must be dissatisfied losers, including John Hewson (above).
If Penny Wong’s ex bed partner, SA’s Premier Weatherill, (above) wants to play funny buggers with an RET, let him pay for it at the ballot box. This bloke should have been booted years ago but the SA gerrymander means he can lose the popular vote by up to 57% and still sit there playing with his donger while relying on more hideous windmills for his State’s power.
Equal GST distribution can never happen under Federal administration, so make the States’ responsible for what they raise in, and what they spend of, GST. All State Premiers annually trek to Canberra anyway for the Commonwealth Grants Commission handouts.
And SA's $60 billion in subs to be delivered in 50 years when it's certain they will be obsolete.... but it saved this bloke's seat (above).
It's GST made simple really, but politicians prefer things to be expensively over-complicated.