Wednesday, 3 February 2016
Questions without Notice
Goods and Services Tax
My question is to the Minister representing the Treasurer, Senator Cormann. I refer to the Treasurer's commitment that a higher GST will not lead to an increase in the total tax-take and ask: will every additional dollar raised by a higher GST be spent on tax cuts and compensation?
The government has not made a decision to increase the rate of the GST. As such, I reject the premise of the question. What the government is focused on are measures to make our tax system more growth-friendly so we can strengthen growth and create more jobs.
I am surprised, Mr President, given that the premise of the question was a commitment by the Treasurer; nevertheless, the finance minister can reject it. My supplementary question is will the tax to GDP ratio increase faster than projected in the last budget as a result of the Liberal's GST tax hike?