Scrapping a raft of GST exemptions would raise a lot more than $ 21 billion in extra income annually, such as more than $ 7 billion from fresh meals and more than $ six billion from healthcare, according to the Parliamentary Price range Office (PBO).
The independent office has modelled a variety of scenarios, from removing the GST-free status of simple meals through to applying a 15 per cent tax to a significantly broader base.
It found the adjustments could raise amongst $ 7.2 billion and $ 65.eight billion in 2017-18, just before compensation is supplied to the poorest 40 per cent of households.
“In the absence of compensation arrangements targeting reduced income households, each and every of the scenarios analysed would have a higher relative impact on reduced revenue earners,” the PBO report stated.
The analysis found for financial year 2017-18:
- Applying a ten per cent GST to basic food would raise an further $ 7.two billion ($ four.eight billion after compensation)
- Applying a ten per cent GST to fundamental food, well being, healthcare care, education, kid care, water and sewerage would raise an extra $ 21.six billion ($ 16 billion right after compensation)
- Increasing the GST to 15 per cent without having expanding the base would raise an further $ 32.5 billion ($ 24.6 billion following compensation)
- Increasing the GST to 15 per cent and applying it to fundamental meals would raise $ 42.7 billion ($ 31.4 billion right after compensation)
- Escalating the GST to 15 per cent and applying it to simple food, health, medical care, education, child care, water and sewerage would raise an extra $ 65.8 billion ($ 49.three billion right after compensation).
Topics: tax, government-and-politics, australia