Amanda Rishworth (Kingston, Australian Labor Party, Shadow Parliamentary Secretary for Health) Share this | Link to this | Hansard source

Today I rise to call on the Prime Minister to rule out once and for all increasing the GST to 15 per cent. A fair tax system is what matters to the people of Australia. This is why Labor will never, ever support an increase in the GST to 15 per cent. We have been very clear that we are not in the business of introducing a regressive tax that will hurt low- and middle-income earners the most. It would cost the average Australian family an extra $5,000 a year. I want to make it really clear where I stand, even if the Prime Minister will not be clear about where he stands and even if the Treasurer will not be clear about where he stands. I want to make it very clear where I stand, because my electors have asked me to stand up for them in this place and say: 'No increase to the GST'.

There are many reasons why I oppose an increase to the GST. First of all, one of the myths going around this place about the GST is that people will be fully compensated. Of course, we know that any type of compensation is not complete and is always temporary. People will not be fully compensated. NATSEM modelling shows that it will be the low- and middle-income earners who will be hurt the most under an increase to the GST. NATSEM modelling has also shown that an increase in the rate of the GST to 15 per cent would require people in the lowest 20 per cent of income brackets to pay seven per cent more. This is not a progressive tax and it is not a fair tax. People in the highest 20 per cent income bracket would pay just three per cent more. So we can see that this is an unfair increase in the tax that will not lead to a fair outcome.

We also know that the Prime Minister has been alluding to the fact that there could be a variety of things paid for by an increase to the GST. Those things could be hospitals, schools, income tax cuts or company tax cuts. Quite frankly, an increase to the GST cannot pay for it all, as well as compensation. This is a myth that is being peddled around by many in our community who want to foist this unfair tax on people.

People in my electorate have said: 'No way'. I would like to quote some of my local constituents, because they are very, very concerned. Patricia from the southern suburb of Adelaide wrote to me and said:

Amanda: I think an increase to GST will severely hurt pensioners, low income earners …

Roman says:

We the public are not a cash cow for the government.

Colin, a small business owner, has pointed out the high costs in relabelling the books in his second-hand book store. He says:

I'm a second-hand bookseller and stock about 35,000 books. Every one of these prices will need to be changed individually.

Those on the other side pretend that they are the party for small business. Small business does not want to see an increase to the GST. In fact, they find the GST cumbersome and that an increase would not only lead to them having to reprice all their items but dent consumer confidence and the consumption power of many who purchase their items. I forgot Caroline—and I don't want to forget Caroline. Caroline says:

I am opposed to the GST Increase. We are being told that we will be given a deduction on our income tax which will offset the GST. This is will be short lived and anyone thinking the income tax cuts will be permanently misguided. It won't be long before the next treasurer looks at that low income tax threshold and decides to put it up again, whilst still maintaining the higher GST. This is not acceptable.

Caroline has the gist of it right. Originally, when the GST was first brought in, it was never going to increase, and now we see the Liberal Party advocating for a five per cent increase and a broadening of the base to include food, health and education. This is a poor policy and it is not supported by the Australian people. It is now time for the Prime Minister, the Treasurer and the government as a whole to rule out an increase to the GST and to stand up for ordinary Australians and actually do what is fair and right.