Squealing may mask a hidden GST agenda
Posted
Despite the faux hysterics from state Liberal premiers about the federal Budget, it's safe to say they're in on the act, most likely with the goal of revisiting the GST, writes Paula Matthewson.
Plenty of Australians are suckers for embarrassing overacting in daytime soaps and semi-scripted reality shows. But even those faux drama queens pale into insignificance next to the Liberal state leaders' unconvincing collective dummy spit in response to the federal Budget this week.
The Budget revealed cuts to health and education funding for the states and territories commencing in four years' time (which is conveniently after the next federal election).
By 2024-25, the Federal Government plans to be spending $25 billion a year on schools (compared to $30 billion) and $25 billion a year on hospitals (compared to $40 billion). This is an $80 billion cut on the amount previously promised by Labor.
State and territory leaders lined up to express their considerable displeasure at being raided to improve the feds' bottom line in 10 years' time.
Queensland LNP Premier Campbell Newman, who's down in the polls and facing a state election in the first half of next year, says the cuts will not "be taken lying down".
Victoria's Liberal Premier Denis Napthine, who has an even more imminent election on November 29 this year, vowed "to absolutely shake the Federal Government from their top to their bottom so that they understand their responsibility to meet their share of public hospital payments".
And newbie NSW Liberal Premier Mike Baird accused the feds of outsourcing their budget problems to the states. Baird will convene an emergency meeting of the state and territory leaders this weekend to discuss the cuts. Incidentally, his state election is on March 28, 2015.
Tasmania's Will Hodgman and Western Australia's Colin Barnett appear much more sanguine about the cuts. This may be a product of their next elections being some way off.
Depending on whether one buys their amateur theatrics, the states are either being wedged by the Federal Government to initiate a national conversation about increasing the rate or coverage of the GST, or the state Liberal governments are in on the act.
The smart money is on the latter explanation. Exactly two weeks ago state and territory leaders were in Canberra for the latest Council of Australian Governments (COAG) meeting with the Prime Minister.
At that meeting the leaders considered the draft terms of reference for a white paper on Reform of the Federation and draft themes for a white paper on taxation reform. Through these processes, Tony Abbott wants to see "sensible adjustments" to funding arrangements, while Joe Hockey wants to "realign" the federation.
This is clearly code for revisiting the GST and perhaps repatriating some other revenue-raising powers back to the states and territories.
It's not too long a bow to imagine Abbott holding a private meeting with the Liberal premiers - outside of COAG - to advise that they'd take a haircut in the Budget but would be the beneficiaries of federation and taxation reform. That is, play along and you will be rewarded.
The other clue to this being the true state of play is the states protesting that they only want a fairer share of the existing GST pie. This is an unsustainable position if the pie remains static.
For every state that gains more GST revenue there will be another that gets less, so the only way for all states to get more (in actual terms) is for the overall pie to grow. And to do that the GST must be increased or broadened.
The states and territories know this. They also know they must play the reluctant bride if they are to avoid the worst of the opprobrium for requesting that the GST be increased.
Just the right amount of squealing will make everyone look good, even Abbott.
Paula Matthewson is a freelance communications adviser and corporate writer. She tweets and blogs as @Drag0nista.View her full profile here.
Topics: government-and-politics, budget, tax
Comments (210)
Comments for this story are closed.
wandererfromoz:
16 May 2014 8:07:03am
Finally finally journalists and writers are waking up - finally caught up with the well founded cynicism and disillusionment of the the ordinary 'mug' punter who are despised by most politicians - that is how bad the loss of faith and trust is.
The only joker in this pack is Colin Barnett who is going to use this 'circus' to push for his claim re more gst - but also signalling his intent by saying the distinction between unprocessed food and processed is 'silly'- totally ignoring health and environmental concerns.
The States push for change or maneuver in such a way to force an expansion or increase in the gst and they will bear also the opprobrium - Abbott of course will use their squeals as an excuse to lie again - what is happening now is the beginning of a long campaign to force through the 'easiest' of all changes re the raising of revenue - the aim is to wear down the electorate - it is going to be an interesting campaign to see who blinks first.
Shorten has to do all he can to force a double dissolution - he has nothing to lose and everything to gain.
Alert moderator
RoxyR:
16 May 2014 8:34:46am
The trouble is Shorten would then be left with the task of repairing the budget and he doesn't inspire me any more than the current mob.
There are times when it's better to be in opposition, this could be one of them.
Alert moderator
JohnC:
16 May 2014 9:13:57am
@RoxyR:
Repairing the budget has more to do with medium to longer term structural reform than short term slash and burn strategies being adopted by Abbott and Hockey. To go to the trouble and expense of creating a commission of audit that was not required to report on the revenue side of the budget says it all.
Bill Shorten is correct in stating that there is no immediate budget emergency and in opposing short term harsh and unfair expenditure cuts he has articulated all that Labor stands for in maintaining a fair and equitable society. His speech last night switched back on "the light on the hill".
Alert moderator
whogoesthere:
16 May 2014 10:56:37am
Labor have a record of over-spending. If they hadn't mucked up so much last time, we might not be in this mess. Shorten has to explain how they'll sort out the structural reforms not just spout platitudes.
Alert moderator
pegaso:
16 May 2014 1:40:29pm
Of course Labor has to spend when in Government, to help the nation recover from the slash and burn by Conservative Governments. it happens every time.
Alert moderator
Ol' China:
16 May 2014 3:22:21pm
Why is the $320 billion that was unnecessarily spent on middle-class welfare by the Liberal governemnt always ignored?
Alert moderator
muzz:
16 May 2014 5:45:10pm
Ol' China
I take it that's a rhetorical question because as Liberal party apologists know bad liberal spending policy like unfunded middleclass welfare good when Labor spends it bad.
Alert moderator
Stuffed Olive:
16 May 2014 3:48:14pm
They do not - a myth repeated by Abbott/Howard lovers. Right now Abbott is spending spending spending. His faux repair is full of holes, lies and deceit and mining truck bucket loads. All his cuts are mean, malicious and not worth the effort financially. Explain why he gives a company tax cut please.
Alert moderator
macca:
16 May 2014 11:18:13am
Of course what you fail to realise is that if there is a DD and if the polls go against the liberals we will not have a labor government anyway, what we will have is a PUP//greens/labor party, all vying for supremacy. Shorten has yet to carry out his promise and make the labor party more open to the labor membership and it is still dominated by the unions, Palmer is still trying to get square with the Nats and is ideologically opposed to labor and he does have a way of doing what he sets out to do and god only knows what the greens want. Be very careful what you wish for and should your wish be granted don't complain when the end result is not what you envisaged.
Alert moderator
the yank:
16 May 2014 11:40:13am
IF that is the case then so be it but at least we will know exactly where Abbott stands.
Alert moderator
Greven:
16 May 2014 1:28:01pm
"The Unions" are not a foreign controlled lobby group. They actually represent a few million Australian employees whom they are answerable to. Unions can't take any action not approved by their members. It's safe to assume any action they take will be in the best interest of those millions of members.
Alert moderator
don't believe the media:
16 May 2014 4:59:51pm
Macca, anything is better than this regime, anything.
Alert moderator
don't believe the media:
16 May 2014 4:58:22pm
JohnC, surely you realise that the commission of audit was a hand picked group of right wingers set up by Abbott to soften the shock of his fascist overhaul of the Australian system.
There really is a budget emergency now as our tax is being used for concessions for the wealthy and the only infrastructure is more roads as a gift to the oil companies.
Alert moderator
a:
16 May 2014 9:32:11am
The LNP would love nothing more that to put up the GST. It hits spenders, not rich savers so the poor get poorer and the rich get richer.
To privitise all the public infrastructure that abbott is selling to his foreign mates like the mint etc, he had to create a debt crises. To lift the GST, there has to be another crises, so this crisis will be the State Crises. Meanwhile, while the government goes about its business of slash and burn to there foreign mates, we will be too busy occupied with crises to notice what is really going on.
What is really going on, is we are being taken over by foreign corporations and foreign countries. After all our political parties have proven to be up for sale to the highest bidder. The one with the most to spend on propaganda at election time wins the control of our cheque books and military.
When the 2 parties are taken over and the 3rd option is also taken over by the same foreign interests, the people have lost all hope. The Political system has been reduced to a few controllable mouth pieces, instead of the 226 independent members representing there constituents. We have now got MPs only representing there leader, which is rather convenient if you own all the parties.
The only remedy is education and not the government education, real journalism by independent media.
Alert moderator
RobP:
16 May 2014 10:26:17am
"The LNP would love nothing more that to put up the GST. It hits spenders, not rich savers so the poor get poorer and the rich get richer."
That sausage-grind is a pretty shallow analysis.
Yes, the GST does hit spenders and it does so in proportion to how much they spend. So, because the big earners spend more in dollar terms, they pay more dollars in GST. I know the argument from the Left goes that the poor spend a larger proportion of their total incomes so it affects them more in real terms. But, that discounts the fact that because Government gets more overall tax they can afford to funnel money in at the bottom end of society and do things that help the poor. But, that in turn will not work so long as the Government is either corrupt or defective.
So, I'd say that the rise in the GST is perfectly OK, so long as corruption and policy, program and administrative defects (as well as policy half-wits) are gotten rid of from Government. That's the real trade-off that matters in my opinion.
Alert moderator
gbe:
16 May 2014 12:42:14pm
Really does anyone think for a minute a premier is going to vote for a GST increase with an election in coming months.
As it is now if they don't keep their commitments they just blame Abbott and he blames Labor and the Greens.
No GST increase any time soon that's for sure.
Alert moderator
a:
16 May 2014 1:02:24pm
If the GST goes up, the premiers just have to blame the Federal Government. Its already been well thought out.
The LNP state governments will get voted out because they have sold us out, trashing the environment and are as corrupt as all hell, not because the federal government puts up the GST.
Thats what the 3 levels of government are for, you can pass the buck back and forth as much as they like and they dont have to take any form of responsibility at all.
It doesn't matter whether its the ALP or LNP in power, the people still have no say in policy, its the political donors that dictate policy and spending. Thats what they pay for.
Alert moderator
Kocsonya:
16 May 2014 1:27:31pm
Wrong.
The big spenders spend less in proportion to their income and thus they pay a smaller proportion of their income through GST than a poor person. The right *loves* the GST because it is seemingly a flat tax (which is easy to sell to the uneducated) but in practice it is actually degressive.
> But, that discounts the fact that because Government gets more overall tax
> they can afford to funnel money in at the bottom end of society
But we'd just agreed that with the GST the government taxes the bottom end of society proportionately more than the top. Then you say that the government can now funnel that very tax back and help the poor? How about not taxing them in the first place?
In addition, there are two kinds of governments. One is the honest government. The other one is the existing one.
Alert moderator
chalkie:
16 May 2014 2:04:10pm
Health and education need to be covered by the GST to improve the redistributive potential of the GST.
NZ has this (at 15%) - things tick over quite nicely there.
Alert moderator
a:
16 May 2014 3:05:05pm
Chalkie, how many taxes does the constitution say is legal?
"Health and education need to be covered by the GST to improve the redistributive potential of the GST.", the redistributive potential here is taking from the poor to make the rich richer. The poor pay more of a proportion of GST and business can claim back credits when the poor can't, the rich don't pay GST on savings and overseas trips. The tax is designed to redistribute wealth up the ladder and keep the poor poor.
Meanwhile, the rich can buy up politicians to do there bidding, as what is happening. We have got plenty of money for war and businesses just no money for the poor. We don't need a GST at all if the government was working in our interests. The triple levels of the bureacrazy is a pathetic waste of money designed to profit corporations and fleece tax payers.
Alert moderator
muzz:
16 May 2014 5:54:25pm
Really 385 000 children living in poverty out of a total population of 4 500 000 that is 8.5% and these children have parents so the total living in poverty is higher . The National party in NZ has cut funding to education , health and police all things that lead to crime and increasing poverty.
Alert moderator
harvey:
16 May 2014 10:14:35am
Lets have a look at ""Labor's Debt and Deficit Disaster"".
There are 10 countries in the entire world with the absolutely maximum credit rating from all 3 world rating agencies: that is AAA (Standard & Poor) plus Aaa (Moody's) plus AAA (Fitch).
In 2013, just before the election, after 7 years of Labor and while we still had a Labor government, we had that credit rating. We were AAA + Aaa + AAA.
This puts us in the same league as Germany, Canada, Switzerland and Norway.
We are better than the US, the UK and China. And over a hundred other countries.
So this is why I'm a budget crisis denier, its a confected myth to stampede us into accepting terrible changes to our way of life.
Alert moderator
Rene:
16 May 2014 11:58:17am
harvey,
I assume that you missed the fact that the US had a AAA credit rating before the GFC, hence, AAA does not stand for much in the scheme of things.
Alert moderator
harvey:
16 May 2014 1:33:32pm
Yes, because US companies, not the US government, gamed the agencies so that the tragedy of the scam mortgage trusts was hidden.
Australia is until now a much more regulated and transparent market than the US, and so the debt of the Federal government, the State Governments, businesses and ordinary known.
So, in Australia, Household debts carried by ordinary people is approx $1500 billions, business debts approx $750 billions, Fed govt debt approx $350 billions, State Govt and Council debt approx $280 billions.
The debt carried by households and businesses is 3.5 times more than all government debt.
This is why we have an AAA / Aaa / AAA top credit rating, because our government has low debt compared to households and businesses, and compared to the rest of the world.
And the figures are open and known. So no US situation here. But we're working on it with the Sinodinos bill and the disfunding of ASIC.
Alert moderator
Alpo:
16 May 2014 3:01:55pm
Rene,
I assume that you know that Costello was extremely proud of his 2AAA that, according to him and his supporters, "clearly" showed his superiority over Keating.... You can't have it both ways, I am afraid.... Following the same criterion, Swan was superior to Costello.... Simple and straightforward.
Alert moderator
terry:
16 May 2014 10:19:29am
Repairing the budget
1. stop buying 12 billion dollars worth of planes.
2. that just about covers the 13 billion dollars of cuts that Labor opposes.
Alert moderator
GJA:
16 May 2014 10:56:40am
More, because those $12 billion planes come with another $12 billion in maintenance.
Alert moderator
Gary:
16 May 2014 12:46:14pm
And keep the mining tax.
And do something about the ridiculous tax concessions on very wealthy people's super funds.
Labor does have a plan to bring the budget back into balance - and it's a lot better than the LNP plan.
Alert moderator
don't believe the media:
16 May 2014 5:06:23pm
Correct Terry, and may i add 3.3bn in the cruel mis-treatment of LEGAL asylum seekers and 2bn in mining concessions. Of course we can add all of the concessions and loopholes in super and negative gearing and the failure to properly tax the biggest corporations.
Alert moderator
Serendipitous:
16 May 2014 5:52:37pm
And what about 4) fringe benefits tax arrangements that mean taxpayers effectively subsidise the purchase of imported cars for those who can access such arrangements?
Alert moderator
John51:
16 May 2014 12:48:56pm
RoxyR I think the current opposition would rather be in government than opposition. Oh, and labor came into opposition at a far worse time when it came in in 2008 with the GFC hitting them while left with Howard's structural deficit.
Alert moderator
Ducktagnan:
16 May 2014 1:00:48pm
Dead right there, RoxyR.
The very last thing that Shorten would want to do is have to repair the budget mess that his Labor predecessors created.
It took 10 years for Howard/Costello to repay the Hawke/Keating $95 billion debt.
How long do you think it will take ANY government to repay the $300 billion Rudd/Gillard/Swan debt unless positive action is taken - starting NOW.
Alert moderator
Sydney Bob:
16 May 2014 8:36:01am
I don't think that there a "punter" out there who does not see the federal cuts to health and education as a phoney war for GST.
Alert moderator
Rene:
16 May 2014 12:04:10pm
Sydney Bob
Health & Education are not being cut, the coalition is just not proceeding with the promises of Labor, which was not accounted & paid for in the forward estimates. The Labor promises were to be paid for by more borrowings, incurring more interest to be paid.
Labor has never understood accountability and living within your means!!!
Alert moderator
Alpo:
16 May 2014 3:05:30pm
Hey Rene,
Then there is no problem, Health and Education will be awash with money to pay for increasing costs.... Please tell me where in the Budget is that increase in funding for Health and Education?
Yep, the Liberals never understand that cuts mean less money. They seem to believe that cuts mean more money.... accountability indeed!
Alert moderator
Mr Q:
16 May 2014 5:09:52pm
They're not proceeding with their own promises either, and if you can't see that now, you probably need to see an optician to get your other eye fixed. That's of course if you can still afford one.
Alert moderator
Gary:
16 May 2014 12:49:27pm
This is not the agenda the LNP took to the last election and it is not the agenda that the Australian people voted for. They are treating the Australian people and our Democracy with contempt by conning people into voting for them with a bunch of deliberate lies before the election and then doing something completely different after it.
Alert moderator
Brad:
16 May 2014 8:42:50am
The squeals from the premiers will have nothing on the squeals from the welfare dependent leaches who are finally having all their free Labor-bucks taken off them.
It's going to be a very entertaining three years here on the Drum. The double dissolution idea is a fantasy, Shorten doesn't have the gumption to pull of that kind of move, but dream away my Drum friends.
Meanwhile I'll happily pay the extra GST, debt tax, whatever it takes to fix the budget disaster that Labor left, using money that I WORK for and have EARNED through a career and skills that I have worked hard to build. I hope you all see the light and do the same one day and give your lives some dignity.
Alert moderator
RLS:
16 May 2014 9:15:57am
Sorry Brad,
I lost my dignity when after 30 years building my career some young university upstart walks in and says your redundant we no longer need you. Got another job which lasted or 10 years. You guessed it, some young university upstart comes in and says your redundant we no longer need you.
Alert moderator
greg d:
16 May 2014 9:41:58am
Really? No offence RLS but as a manager I would never hire an inexperienced graduate over someone with ten years experience in my business unless the person with ten years was extremely bad at what they do.
Alert moderator
SueB:
16 May 2014 10:16:07am
I agree.
No business person I know wants and can afford to get rid of experienced workers so they can spend thousand training new employees who will likely take those skills to their next promotion.
UNLESS that older worker with experience is reluctant or refuses to up-skill via further education, training and re-qualification.
It's about lifelong education and getting off your bottom and embracing it.
Alert moderator
Professor Rosseforp:
16 May 2014 11:36:57am
Possibly the upstart wanted someone who could distinguish between "your" and "you're" after 40 years.
However, putting that aside, RLS's plight is completely believable in my view. I've seen it happen many times.
Employers don't want the costs that come with experienced workers and are happy to "restructure" to a situation where experienced workers are less necessary than 1 or 2 managers in charge of inexperienced hacks with very limited responsibilities.
Alert moderator
Chris L:
16 May 2014 9:23:02am
I know there is a portion of welfare recipients that would rather sit on the dole than work, but their numbers are dwarfed by those who are out of work against their will.
I don't agree with this idea of punishing everyone just to make sure we get those few freeloaders. I certainly don't think it's a good idea to tell young people to spend six months without anything to live on. That's just a recipe for an exploding crime rate.
Alert moderator
Professor Rosseforp:
16 May 2014 11:40:36am
Yes, it's a blunt instrument for hiding managerial incompetence that allows people to be on welfare when they don't belong there.
My view is only anecdotal, but I the only people I know on direct welfare payments are people who need them and fill all the criteria.
Incidentally, there are also lots of people who won't go onto welfare, but who are entitled to. I have yet to see a government seeking them out and advising them to get onto Newstart, Disability allowance, etc.
Alert moderator
gerard oosterman:
16 May 2014 9:39:28am
"using money that I WORK for and have EARNED through a career and skills"
Brad:
Doesn't sound as if your job is very enjoyable. Why do so many of you resent those that haven't got a job implying working is a kind of punishment that no one should be allowed to escape from?
Alert moderator
ATO:
16 May 2014 10:01:17am
Work is better than selling one's (renovated) home to avoid tax.
Alert moderator
JoetheLion:
16 May 2014 9:47:19am
This idea that only LNP voters work (or work hard) is hilarious. I vote for socialist policies and have never taken any form of welfare from the government aside from HECS which I am currently (and happily) paying back.
Alert moderator
SueB:
16 May 2014 10:23:38am
I would suppose you're employed in the private sector from your post, Joe. Congratulations for getting a subsidized education (more than the value of your HECS debt, BTW which I have been happy to provide via my income taxes) and starting your life of supporting others. It's appreciated.
Plenty of hardworking people vote for the ALP. Sometimes they aren't even socialists. I don't know anyone who thinks otherwise.
I'm not sure how you come to say that there is an idea that "only LNP voters work (or work hard)". That is as silly as saying that all unemployed people vote for the ALP or the Greens.
Alert moderator
JoeTheLion:
16 May 2014 11:12:07am
I guess I was just reacting to a rather narrow view that often appears here. Plenty of those from all sides! BTW, I've worked mostly in the private sector but currently am doing some public sector work.
Alert moderator
mitch of ACT:
16 May 2014 10:05:22am
Brad you sing the same song as those self-satisfied dispassionates who don't realise that they are but one bout of severe physical or mental illness, accident, job loss, marital breakdown, investment bust or other personal disaster from being in the same position as those "welfare dependent leeches" you so freely criticise. Never be critical of anyone with whom you would not change places. You think you might be able to do better but what if the deck was stacked against you as it often is against them, and you did worse for lack of experience at living on the hard side of life. Just because your dear leader is a Sunday-morning Christian when it comes to that sector of society, doesn't mean that you have to fall to that standard and below by cheering on his mean, spiteful policies. It almost displays an envy of their position in allegedly getting something for nothing. Yes that sector has its leeches and bludgers but then you only have to look at ICAC to see that having wealth doesn't necessarily confer any moral superiority.
Alert moderator
Professor Rosseforp:
16 May 2014 12:33:02pm
Nailed it!
Alert moderator
Grover Jones:
16 May 2014 1:57:06pm
Hear, hear!
I had a series of seizures early last year which lead to a year off work. It can happen to anyone and often does.
Alert moderator
Sir Robert of Lindsay:
16 May 2014 4:40:45pm
According to the brave new world of Abbott Think, that apparently was your choice.
Now if you had chosen instead to get cancer or alzhimers at least there is now hope for a cure in a few decades time because of Abbott and Hockey's magnaminous contribution to modern medical and scientific research.
Alert moderator
Sydney Bob:
16 May 2014 10:11:24am
Unless you have never been to school, ever been sick, never driven on a road, you have sued tax payers money
Alert moderator
burke:
16 May 2014 11:18:28am
Never sued a taxpayer in my life!
Alert moderator
Karen Tipler:
16 May 2014 10:15:02am
I really hope you don't lose you job. Most people on welfare do not want to be there. Most have lost their jobs through no fault of their own and desperately want to work. Very few people in their right minds would chose to live on below poverty line welfare.
You should try it sometime, just in theory.
Alert moderator
Dragstar:
16 May 2014 10:15:22am
I am a single (widowed) parent with two children under five years old. I work part-time but gain little extra income from this work because of child care costs and reductions in my welfare payments as a result of my work income.
No doubt I am one of Brad's welfare dependent leaches. As Brad demands, I am not entitled to any dignity.
Alert moderator
Mark:
16 May 2014 10:36:57am
"Meanwhile I'll happily pay the extra GST, debt tax, whatever it takes to fix the budget disaster"
Really, whatever it takes? How about cutting the super tax concessions that cost $35 billion in 2013-14 and are expected to rise to 50.7 billion by 2016-17 making it the biggest single government expenditure. And if you're worried about people then putting less into their super how about you offset this with laws to stop the super fee rip off, estimated to cost $20 billion per year, chop fees in half and there is an extra $10 billion per year in retired peoples pockets.
Or if you really are prepared to do anything, how about we reverse some of the Howard era personal income tax cuts, the root cause of the structural deficit.
I also have a career and skills, working to earn a very health income, and I'm fine with addressing the structural deficit through increased revenue, not just reductions in government expenditure. I'm fine with an increase in my personal income tax, a progressive tax unlike the regressive GST.
Alert moderator
Professor Rosseforp:
16 May 2014 12:36:37pm
Another suggestion -- get rid of health funds subsidies.
While we're talking about leeches, let's remember that if you join a health fund, you're exempt from a medicare levy. How about everybody pay the levy, and stop people getting tax breaks on their health fund contributions. Health funds only serve to inflate the cost of health provision, and subsidise dubious products like "running shoes".
Alert moderator
a:
16 May 2014 10:55:13am
There is plenty of money for overprised US war birds and jap subs and spending 10 years fighting our longest and most costly wars, but whatever happens the Gov should not help ourselves, that would be a waste of money wouldn't it???
Alert moderator
Mr Q:
16 May 2014 5:11:02pm
It's not Shorten that gets to call a DD election Brad. He's the opposition leader.
You're probably right though, I very much doubt that Abbott would have the balls to take this all to an election.
Alert moderator
don't believe the media:
16 May 2014 5:22:56pm
I bet you think you're a decent human being don't you Brad.
What you may really be doing is being an infrastructure leech (education must have needed more money when you were at school too. Not leach.) by driving around on roads paid for by Labor governments, using public transport provided by Labor governments, maybe you benefited from free university, or a government school or government funded private school. Have you ever used medicare?
How about you pay the full and personal price for all of these things you scab.
On the DD election. Abbott promised one if he didn't get it all his way. He promised one rather than co-operate with minor parties and independents. Shorten doesn't need the gumption, Abbott needs to honour at least one thing that came out of his mouth.
Now, speaking of dignity, the measure of any society is how it treats its elderly and less fortunate. I doubt you were born into poverty, or were born as an indigenous Australia, or a war victim from the west's unquenchable thirst for conquest and consumption, or of a tyrant.
To sit in your ivory tower and speak of the people in our society who need our help the way you have says a whole lot about the type of person you are and nothing about anyone else.
What you are is the perfect example of the selfish, heartless hypocrites who voted these fascists in.
Alert moderator
Maynard:
16 May 2014 8:54:12am
Yes but we have everything to lose in this circus called Australian politics.
As that comedy show's star used to say "This is serious"
Alert moderator
peter:
16 May 2014 9:30:17am
If as Bill Shorten says there is no government debt why are we paying one billion dollars in interest every month
Alert moderator
Sir Robert of Lindsay:
16 May 2014 4:47:21pm
Again Peter shows the reason we have such pathetic politicians.
Please pay attention Pete. Your vote is valuable and it's a pity to waste it on mindless thought bubble politics.
He said there was no CRISIS. He said our debt was MANAGABLE - ie we have the means to repay it without the heartless approach of these lying arch conspiritors.
That's a long way off saying there is no debt.
Alert moderator
Sack:
16 May 2014 9:38:25am
Tim Costello had an unusual performance on the radio this morning. As well as trying to be an expert on every aspect of the economy, he argued that GST should be applied to unprocessed food because the poor mostly only eat processed food. As well as this being a demeaning stereotype, I don't quite see how making fresh food even less affordable to those on low incomes who want to eat well can be a good thing.
Alert moderator
Professor Rosseforp:
16 May 2014 4:02:09pm
Yep, especially since the supermarkets jacked up the price of non=GST food when the GST came in. This was perfectly legal -- provided they didn't say the price rise was because of the GST.
Alert moderator
don't believe the media:
16 May 2014 5:28:22pm
Costello was as competent a treasurer as Howard. That is, not at all. (Peter that is, Tim's his ethical brother).
Alert moderator
harvey:
16 May 2014 5:24:26pm
Thanks for this article, sometimes we miss the bleeding obvious. Of course, with elections in Qld and Vic and NSW coming up, Abbott wouldn't kill their chances.
I agree its likely all just entertainment put on for the dumb voters, political theatre, a strategy to make the states look better while belting the taxpayers.
Win-win for the Libs strategy machine if they can pull it off.
Alert moderator
the yank:
16 May 2014 8:09:06am
With any amount of luck there will be just two LNP state governments come a year or so from now.
Image the Liberals taking major cuts to education and health and the selling of infrastructure to an election as well as a massive increase to the GST. Oh please, please, please.
Alert moderator
Ben the lawyer:
16 May 2014 8:32:22am
'Image the Liberals taking major cuts to education and health and the selling of infrastructure to an election as well as a massive increase to the GST.'
Responsible government is very rarely popular.
From a political perspective I think the only state at realistic risk at the moment is Victoria. Tasmania's government is too new, WA, QLD and NSW have such massive majorities that they'll each get another term at least (and I can't see enough people in WA voting for Labor any time soon - maybe if they got rid of the carbon and mining tax).
Alert moderator
the yank:
16 May 2014 9:18:41am
Nothing else can be said but we will see.
What you call responsible is in my opinion a total shambles and incredibly short sided but that is the way with conservatives why worry about the long term when you can hit Labor over the head when they try to fix your stupidity.
Alert moderator
Greven:
16 May 2014 1:43:45pm
If you look at it closely you'll find that it's an other battle in the class warfare Buffett mentioned "there is a class war and the rich are winning." This is just a cynical transfer of 13 billion from poor people to rich people. As you notice nothing on the super tax rort or health insurance rebate but a very generous PPL. It's interesting how everyone talks about how destructive inequality is and yet every decision makes it worse.
Alert moderator
jennbrad:
16 May 2014 2:35:59pm
Was it Keynes who said, "the rich need to be given money as an incentive, but the poor need it taken away as an incentive"?
Alert moderator
Sir Robert of Lindsay:
16 May 2014 4:58:04pm
No, It wasn't. I addressed this question in another post of yours, but hey keep repeating a lie long enough......
In fact Keynes was a long term critic of austerity in the manner you state.
Ross Gittins used the phrase recently to describe the "finding" from the Commission of Fraudit. Looks like the LNP Blogg Squad are jumping on it too.
Alert moderator
JohnC:
16 May 2014 9:25:16am
@Ben the lawyer:
Responsible government is very rarely popular? Stupid governments even less so I would suggest. The Abbott government is a case in point. How on earth could they squander their good will with the public by implementing a budget that offends the majority in the electorate. All done under the pretext of a budget emergency that most credible economists agrees simply does not exist.
Alert moderator
SueB:
16 May 2014 10:32:42am
JohnC, it doesn't matter if the government is considered to be "responsible" or "stupid".
The barracking from each "side" is ridiculous. It is all about political positioning and saying what each "teams" power base wants to hear, from the LNP, ALP and even the greens.
This current political environment reminds me of the period after Howard won the GST election. So much tribal rhetoric, outright lying, side taking from the political parties and media frenzy by the usual suspects.
The economic point is that Australia's economy needs re-structuring for the longer term. This "budget" is an ambit position, as was Howards post GST legislation.
I want to know what Shorten and the Greens would do to start the restructure.
Alert moderator
JohnC:
16 May 2014 11:11:02am
@SueB:
Perhaps Shorten could have been guided by the faux commission of audit if it had been asked to comment on the revenue side of the budget. He has already promised to oppose (repeal) the PPL thereby saving $5billion over the forward estimates. Not a bad start.
Perhaps he could also look to a renegotiation of the MRRT. Having just completed massive investments in infrastructure the mining companies are now getting into top gear extract our finite resources. Seems like a good time to hit them once and hit them hard while they are chasing a return on their investments. If they resist, tell them thanks for the infrastructure spend, I am sure the next lucky punter will be very pleased to utilise them and please shut the door quietly behind you as you leave. The Gnomes of Zurich will be cross.
Alert moderator
SueB:
16 May 2014 12:41:55pm
I'm talking about REAL structural changes.
Shorten will need to be as crazybrave as Abbott when it comes down to brass tacks.
I'd like to hear what he would do about personal, company and superannuation taxation if he wants to keep the welfare that is in place now. If the ALP believes we can afford to keep the handouts in place, it needs to raise revenue, NOT borrow for it.
I wont be holding my breath.
Alert moderator
don't believe the media:
16 May 2014 5:39:06pm
SueB, nice work to skirt the issue. The economy may or may not need restructuring, but the actions of this government are despicable and indefensible. To not see this puts you squarely in the my team your team position. Criticism of it does not mean people are rooting for their side, it means they can see this is a furrther fascist take-over of our once great country.
Alert moderator
SueB:
16 May 2014 6:07:39pm
Wow, some ultra emotive language there. Did you say the same about Gillards carbon tax lie, or swans superannuation changes that weren't disclosed before an election?
The economy needs a restructure. We have to stop borrowing to pay our weekly outgoings and something has to change. I don't want to see my kids paying for ALL of your pension.
That you can't see that means you're in lala land.
Alert moderator
muzz:
16 May 2014 6:30:44pm
The Democrats the ones responsible for the GST after all without them voting for it in the senate it would never have become law were justifiably punished political extinction.
Alert moderator
Algernon:
16 May 2014 9:36:13am
To a certain extent I agree there Ben, I think the Liberal Government in Victoria will be gone in November. The majorities in NSW and Queensland are very big however, NSW has the problem of Liberal members fronting ICAC. This week the member for Newcastle this week will quit next election due to taking donations from a banned source and the member for Epping was found to have dealings with people of interest. NSW could have a minority government but I suspect Liberal next March.
The LNP will be lame duck as Newman will lose his seat.
The WA election is too far away at the moment.
Alert moderator
FalKirk:
16 May 2014 4:06:59pm
Algy
Yes the LNP will lose Ashgrove. But Newman won't be the candidate. The Party will parachute him into another safe one.
Plenty of precedents on both sides of politics.
Alert moderator
Dazonthecoast:
16 May 2014 9:53:54am
BTL,
You almost had it right in your second paragraph.
"Responsible government is very rare"
Ignoring ideologies for the moment one thing sadly lacking is a long term strategy.
As an example no longer paying car manufacturers a subsidy to stay here. Don't disagree. Why could we not have tried to arrange say a continued 5 year subsidy, deferring the projected job losses, knowing full well they would occur in 5 years. Then during that period plans are enacted to develop new industries that can use the skills and manpower of the current workers so that at transition we have continued employment for those people, avoiding welfare and social issues and maintaining the economic strength of the country.
What is wrong with this suggestion? First thing is - 5 Years, which is longer than the term of a government. No one seems to plan outside these narrow limits.
We need strong BiPartisan commitment to a strategy for the country. Not sure I will see it in my lifetime.
Alert moderator
GJA:
16 May 2014 11:00:58am
Responsibility takes a longer view than the short-sighted measures this budget imposes. Responsibility is not ideological payback for another party's sucesses. It is not responsible government to kill Medicare or the pension or education. There are so many better options the Liberals could have pursued, but they chose differently.
Alert moderator
whatif:
16 May 2014 12:18:31pm
In his campaign launch speech in August, Mr Abbott said: "The worst deficit is not the budget deficit but the trust deficit. This election is about trust."
Alert moderator
Luke:
16 May 2014 12:39:22pm
I guess it doesn't matter now, he's got the gig. The next election will have Turnbull as Leader so he has no need to worry about that either, I'm sure that's already accepted within the Coalition as well.
Alert moderator
don't believe the media:
16 May 2014 5:34:24pm
Ben, if you can enlighten me on the responsible qualities of cutting funding for health and education and leaving the super and negative gearing untouched, the mining concessions at 2bn, sacking our scientists, making survival even more difficult for our elders and leaving major corporate entities further untouched i would be most grateful.
Please don't talk about a non-existent budget emergency that Hockey doubled.
Alert moderator
Andy1:
16 May 2014 8:46:27am
Imagine Labor going to an election with no more boat tow backs no more boat turnn backs, no savings or realistic plans to repair the budget and return to surplus (or maybe they will just lie about the surplus again).
Alert moderator
the yank:
16 May 2014 9:19:21am
We can only hope Abbott will go to another election towing their lies behind them.
Alert moderator
bob:
16 May 2014 9:32:00am
Border security is Labor weak point.
They could stand up for a progressive tax system but fail that also. That is, the Labor's Budget reply could have sided with some of Libs ideas on rolling back Family Payments and Debt Levy for high income earners on grounds that it was not part of Libs plan going into last election.
Labor fails again.
Alert moderator
GJA:
16 May 2014 11:03:35am
The Family Tax Benefit provides benefits to society as a whole and should have been retained. The debt tax is a short-sighted "quick fix" that will not raise the revenue proposed and won't touch the sides of the deficit. Labor hasn't failed in this budget, but the Liberals surely have.
Alert moderator
Sir Robert of Lindsay:
16 May 2014 5:03:07pm
Border security is Labor weak point.
Yes it is Bob, for some inexplicable reason people think a problem hidden is a problem solved.
Many in my electorate who have never met a muslim voted for Abbott in the fear they were being over run by terrorists.
No doubt they'll beat up a "crisis" on our borders just before the next election again. Hopefully the brain dead that voted on the red neck basis will think about the other crap this guy fed them before ticking the LNP candidates box next election.
Alert moderator
gtr:
16 May 2014 8:56:56am
That's why they're making the cuts now (as much as they possibly can), and will take a balanced budget to the election along with a recovered economy, zero boats and no carbon tax.
Meanwhile the hysteria and lies peddled by Labor about this budget will be long forgotten and the Drum will continue to be a dark corner of the internet only frequented by rusted on left wing underachievers.
Alert moderator
the yank:
16 May 2014 9:20:57am
A conservative having the gaul to talk about Labor lies especially after what the Abbott government has just done.
Nothing hysterical about pointing out the cutting of $80 billion from health and education. or is that just small change to you?
Alert moderator
Bev:
16 May 2014 10:39:29am
The $80 million was UNFUNDED. In other words it never existed except as a promise somewhere down the track. In any case constitutionally the states are responsible for education and health. For a long time federal governments have increasingly usurped state areas of responsibility. If it means increasing state taxes and less federal tax so be it. Perhaps it will rid us of central bureaucracies who are out of touch with what is happening locally and apply one size fits all policies to different areas of Australia where different conditions apply.
Alert moderator
jennbrad:
16 May 2014 2:44:27pm
What do you mean by "unfunded"? Each budget has forward estimates (usually for 3 years) which set out both expenditure and expected revenue. The further away the more speculative.
There's nothing unfunded about forward estimates.
Alert moderator
Desert Woman:
16 May 2014 9:41:17am
You've made a lot of assumptions in that comment Gtr; that the economy will recover on the backs of endless dole queues, well, those who haven't literally died waiting; asylum seekers will suddenly give up trying although there is no sign of it yet, that the Senate will pass the repeal bill on carbon pricing - who knows who will be in the Senate if there is a DD?, and only Labor is opposing this budget. The possibilities over the next few months are many and various but it is clear already that there will be no smooth sailing for this govt.
Alert moderator
Polly Prissypants:
16 May 2014 9:53:41am
The right wing are great at gaslighting with dismissive language. Joe Hockey talking about 'screaming' over co-payments, Bolt sneering at 'bleating' state premiers, you and your ilk claiming that objection to making young people live on air for 6 months of the year or older people choose between a doctor visit or a meal is 'hysteria'.
It's disgusting. We used to be a society.
Alert moderator
gtr:
16 May 2014 10:12:08am
>We used to be a society.
I guess working conservatives are tired of being continuously taken advantage of and want out of this so-called "society"
Alert moderator
Desert Woman:
16 May 2014 11:12:19am
Gtr, actually the middle to upper class conservatives have been doing well as the ratio of their salaries to those of the workers below them has been increasing. Lower or working class conservatives find themselves in the same boat as the rest of us, trying hard to keep our heads above water. Which conservatives were you referring to?
Alert moderator
Ben the lawyer:
16 May 2014 10:26:41am
'It's disgusting. We used to be a society.'
Eventually you run out of other people's money.
Alert moderator
Rar:
16 May 2014 10:51:08am
Worst anti socialist argument ever.
Everything in every system of society is built on other peoples money
Alert moderator
the yank:
16 May 2014 12:13:05pm
It is actually OUR money, at least all of those that pay taxes. And it is we that go to elections to choose a government that sorts out where it flows.
Now for that to work the parties running for government have to tell us exactly how they are going to spend it not lie to us and then say well those lies don't matter.
Alert moderator
EVAN:
16 May 2014 11:00:44am
"Image the Liberals taking major cuts to education and health and the selling of infrastructure to an election as well as a massive increase to the GST. Oh please, please, please."
Well they will won't they?. Don't the cuts to health and education not come in untill after the next election
Alert moderator
the yank:
16 May 2014 11:24:10am
The cutting starts now but builds up and will force the states to agree to a GST because they will be short by then $coming on $80 billion.
If you remember Abbott said there wouldn't be any cuts to health or education.
Alert moderator
Alfie:
16 May 2014 11:25:43am
"With any amount of luck there will be just two LNP state governments come a year or so from now."
Ha, ha Yank in your dreams perhaps. Forget what the LNP are doing, just take a good hard look status of Labor in some of these States. They don't even shape up and a decent opposition, let alone alternative government.
Alert moderator
Forrest Gardener:
16 May 2014 8:10:29am
Paula, costs are routinely moved back and forward between the states and the commonwealth.
There's no need to impute a conspiracy. That's just Labor thinking at its worst.
Alert moderator
the yank:
16 May 2014 8:31:31am
Guess you will never wake up.
You use to talk about rusted on Labor supporters but you should look in the mirror to see what a rusted on LNP person looks like.
We are talking about $80 billion and the question Paula is asking is are the LNP Premiers in on the act or not.
Alert moderator
din:
16 May 2014 9:03:31am
80 billion in 2024, not 80 billion in 2014
did labor every say where that 80 billion was coming from ?
Alert moderator
the yank:
16 May 2014 9:23:35am
Neither I nor the opposition said it was $80 billion now.
And how the states will find the money, if they bother, will be a state problem. Can you see the states going to elections pressing people for another $80 billion?
Alert moderator
Bev:
16 May 2014 10:42:15am
It was very easy for the states to shift blame under the present set up. Perhaps we will see an end to the "blame games" played out between state and federal governments as an excuse to do nothing. We can live in hope.
Alert moderator
Luke:
16 May 2014 11:03:26am
Where was the $80 billion Labor promised coming from????? Do you have any idea's? I think you will find it was just all talk and no funds.
Alert moderator
sleepykarly:
16 May 2014 10:19:19am
The Budget Emergency must be incredibly urgent if so much of the repair job can wait four years.
Alert moderator
Forrest Gardener:
16 May 2014 6:19:36pm
Yank, first you abuse me then you agree with me.
Indeed Paula is asking whether the premiers are "in on it". The it is of course a conspiracy.
How disappointing it is to have to continually explain such simple concepts to the Labor Fan Club.
Alert moderator
I think I think:
16 May 2014 8:36:11am
Except Paula is not a Labor thinker, and actually has insight into LNP spin. So she would know better than you or I, Forrest.
Alert moderator
Forrest Gardener:
16 May 2014 6:23:14pm
ITIT, imputing conspiracies is at the very core of Labor thinking.
Every day here at their ABC, the Labor Fan Club bleats about this or that conspiracy preventing Labor from achieving government and perfection. To Labor everything is somebody else's fault.
Alert moderator
kenj:
16 May 2014 8:37:54am
This is not Labor's conspiracy, Forrest. It is all Paula's own private creation with not one scrap of connection to the real world.
Alert moderator
Forrest Gardener:
16 May 2014 6:26:07pm
K, it is the weakness in thinking which characterises the article. Conspiracy theories are for the simple minded and those who always want to blame somebody else for their own shortcomings.
Alert moderator
Artful Dodger:
16 May 2014 6:48:29pm
FG -You must be referring the the new Government-it sure fits the bill of weakness- simple minded and blames everyone else-including the vulnerable.
Alert moderator
Alpo:
16 May 2014 8:13:54am
What a naive article. Increasing the GST would be an act of political suicide by Napthine and Newman, who will soon face elections, and also by Baird. This is no silly little "squealing", this is a battle for survival. But hey, the Abbott Government itself is now in a battle for survival of his own, so this GST scenario, actually, may never eventuate once the main instigator: the Federal Liberliar Government, has been voted out by the betrayed People of Australia!
Alert moderator
barsnax:
16 May 2014 8:55:44am
I don't think the article is na?ve Alpo I think it's right on the money.
Listening to Hockey and Pyne in separate interviews on this subject, there is no way that the Liberal state premiers aren't in on this. They may not be happy but there is no way Abbott would drop this bombshell without the premiers knowing about it first.
They can now go to their elections and say "if you want the standard of health and education to stay then we have to either sell assets or raise the GST. Which do you want?
I think we all know what the electorate will say.
Alert moderator
Tim P:
16 May 2014 9:55:24am
The ideological stance taken by the Abbott government is fundamentally self contradictory. It's withdrawing funding from health and education on the one hand and pouring it into road infrastructure. The reasoning is that health and education are states' responsibilities.
So, whose responsibility is road infrastructure again? That's right, state governments!
Methinks there's method in's madness, but I can't quite figure it out yet. If the $80B is simply a reduction in unfunded overspend, then why frame it so belligerently, as Mr Pyne did, as 'states' responsibilities' (yeh, suck it up, you wanted states' rights, so there ya go!)?
If it's a redirection of actual taxpayer funds then I've gotta ask, where is it going and why are we paying tax again?
More to the point, why is the government billboarding the $80B funding reduction? If the reduction of funding is a bad thing, I would have expected the government to highlight its continuing commitment to education and health (the $50B it will continue to invest). Instead it paints itself as dropping education and health spending, handballing the shortfall to the states with a 'sucks to be you, gotta love the Federation. LOL.'
This is a play, yep. The dead rodent is definitely whiffy.
Alert moderator
GJA:
16 May 2014 11:26:44am
Baird said in his television appearance that Abbott did not raise the cuts during the COAG meeting. If that's the case, Abbott has sabotaged the States without their complicity. Abbott, to my knowledge, has not denied Baird's assertion.
Alert moderator
whatif:
16 May 2014 12:24:33pm
this is just another smoke screen, elections coming up, if the lnp are re elected, it will give the green light to raise the gst, and then they will set about destroying the nation to satify their own lust for power.
Alert moderator
cfz:
16 May 2014 2:36:33pm
There are two territories you fail to consider and one of them is labour. Any increase in the GST will be blocked by the ACT.
Game over.
Alert moderator
burke:
16 May 2014 11:37:58am
You are right. No premier will go to an election asking for a GST increase. So it will not happen.
Alert moderator
Kerrie:
16 May 2014 2:46:39pm
I don't understand. To change the GST requires all states and territories to agree including SA's Labor goverment. They won the unwinnable election because of voter disenchantment with Tony Abbott's Liberal goverment. Our unemployment rate is high and set to increase because of the loss of the car manufacturing industry etc. Why on earth would SA Labor change it's mind? Abbott and the Liberal premiers know all this. Therefore Im not convinced Paula's theory is correct.
Alert moderator
muzz:
16 May 2014 6:48:17pm
No changing the GST does not require the States agreeing to it the GST is a commonwealth l law so can be changed by the commonwealth government . They would prefer it if the state Govts agreed because they could blame the states and the states would prefer the commonwealth Govt to do it so they can blame them.
IMHO I believe the state Govt should give up responsibility for Health and education and push it all onto the National Govt that would stop the blame game between state and commonwealth.
Alert moderator
Desert Woman:
16 May 2014 8:26:06am
Did it occur to the good Ms Matthewson that this is hospitals and schools we are talking about here, not just a political punch up. You know, those places where some of us need to go for an emergency pit stop, and where we send the little kiddies so they are well prepared to become industrial cannon fodder. I too may indulge in some quite dramatic gestures if I take my old bones to a hospital only to be told to take them home again because it has become a nurse free zone.
Alert moderator
GJA:
16 May 2014 11:28:29am
I was also intrigued by the indexation of educational funding to the CPI, as if consumer spending had anything to do with schools. Prices go up, so does educational funding; prices go down, so does educational spending - but the number of kids doesn't change and neither does the need for a quality education. Good "lucky country" thinking there.
Alert moderator
Bill:
16 May 2014 8:30:39am
This is exactly what I thought of this absurd situation. As if Hockey and Abbott would drop a bomb like that without consulting the NLP State premiers first. And, as if they don't want to have more taxing power. As if. As if. I am so sick of these dishonest politicians. It is very sad how many journalists have been duped by this mob.
Alert moderator
Ted:
16 May 2014 8:33:18am
Paula is right to be suspicious about how much the state premiers might be complicit in these budget shortfalls. I must admit I was wondering why the PM would attack his state-based allies.
We should not lose sight of the underlying issue. Conservatives love consumption based taxes because it allows them to keep personal income tax rates low, particularly at the top. A personal tax increase will cause some pain but it is absolutely necessary to put an end to these crazy measures in the budget. By comparison, a GST hike will send increased costs right through the economy.
Here is a note to Bill Shorten. Do not oppose the deficit levy - say it is not enough and take an increased tax scale to the next election. Leave the lower rates alone. People will accept this if it stops the problem of running a deficit every year and stops the boats...oops..cuts.
Stop the cuts!
Alert moderator
karen:
16 May 2014 9:38:18am
Agree with note to Bill S.
Debt Levy on high income earners with bi-partisan support.
As average earner is on about $75k/yr there will be little protest at ballot box.
At same time, link tax-free threshold to CPI so that tax system is not regressive.
The party that lifts GST or includes food is not going to get voted back in for some time.
Alert moderator
kenj:
16 May 2014 8:35:05am
Paula Matthewson was a media adviser to John Howard so it is to be expected that she would come in with a spin favorable to the Abbott government, which she does.
That's "faux hysterics" from state Liberal premiers, is it Paula? That they're really just playing 11-dimensional chess when they say they are angry about the budget cuts directed against their states? That they are hopping on planes to meet together as part of a sly PR exercise all worked out with Tony Abbott weeks ago, is that it? Sheesh. I know you Liberal apparatchiks want to put the right spin on things but this is just silly.
Alert moderator
Tim P:
16 May 2014 10:11:15am
Kenj, I'm not seeing the favourable spin.
The tactics around the cuts to education and health are a little overcooked and Mr Pyne's ham acting is spoiling the show, if you'll excuse the mixed metaphor.
The Abbott government is being way too bolshy on the issue of funding to the states as if it is determined to provoke the states into demanding changes to the GST. The state premiers, for their part, are only happy to oblige, with the understanding that they can look their electors sincerely in the eye and say 'It was not of our doing. Look, see? $80B.'
That doesn't look like positive spin to me.
Alert moderator
GJA:
16 May 2014 11:30:03am
Howard himself hasn't come in with any favourable spin. He seems a bit put out that Tony's taken the axe to some of his signature programs and been (vaguely) critical of Abbott's transparent attempts at spin.
Alert moderator
Maynard:
16 May 2014 8:36:42am
Well dragonsista I hope that somebody is in on the act because as I understand it we don't have a financial crisis now because we are triple a with some us agency, but we will soon be a basket case that you must pay for because anything I get from the government is sacred.
Have I got this right
Alert moderator
GregL:
16 May 2014 8:39:19am
I can recall when the GST was introduced. State premiers were bleating about it in public but privately they were cheering as it gave them access to what they saw as a river of gold. The fact is that it has not grown as much as predicted and the GFC has had a lot to do with that.
What Abbott and Hockey are about is orchestrating a scenario where the premiers will scream blue murder but in the end an increase in the GST by either broadening the base or increasing the rate is a certainty. Abbott and Hockey will then simply say it was not us. The premiers will say the same but in the end the punters will pay. Silly playground games.
Barnett is a cheer leader for this because although he has a cascade of royalties from mining he is in economic strife. Forget his bleating's about poor WA. They were propped up for years and years by the eastern states before the red dirt was exploited and he never acknowledges this fact.
This is a LNP con. A contrived budget emergency (no responsible economist supports the rhetoric coming form Hockey and Co) masking an ideological crusade against the vulnerable.
Alert moderator
kenj:
16 May 2014 9:02:50am
It's not an LNP con job. State budgets are overwhelmingly committed to fixed expenditures in health, education, policing and transport. That's something like 90% of their budgets in those four items in every state. If the Federal government takes $80 billion away it blows a massive hole in state finances that shows up in huge cuts in services in those areas and a dramatic fall off in voter support. You can't brag about your new freeways while your schools and hospitals are in a shambles. And you can't quell voter discontent by slugging them with a GST increase in order to fix the problem. The premiers are genuinely and deeply pissed off, and rightly so. The Abbott government is lumbering them with an intractable political problem.
Alert moderator
FlapDoodle:
16 May 2014 8:39:54am
This is quite an effective political strategy if the players do not fluff their lines. The political costs will be quickly lost in the morass of Federal/State argy-bargy and the monetary costs will find a home in the pockets of the tax payers as always intended. The Conservatives shirk their responsibilities federally and have their responsibilities forced on them in the States. Effective politics but economic vandalism.
Alert moderator
custard:
16 May 2014 8:46:46am
Well if a fiscal piece of blackmail was required to get people to start having a conversation about the GST so be it.
The funny thing is how the ALP have dialled themselves completely out of the debate.
They are irrelevant.
BTW how effective a election campaign will the ALP have advocating a stupid carbon tax, a mining tax that spends more than it raises and their MP's already wanting to soften border policies?
Hint: Lose
Alert moderator
rabbie:
16 May 2014 9:12:24am
custard, the ALP and the millions of Australian who voted ALP are far from irrelevant. The ALP with support from the Greens will oppose Abbott's war on ordinary Australians and they will block many of his worst assaults in the Senate.
Abbott does not have the ticker for a double dissolution (Hint: Lose).
Alert moderator
Lance Kennedy:
16 May 2014 9:43:39am
Don't forget that Abbott, is The Governments 2nd choice. They have another, popular, very able bodied contender waiting in the wings.
Bring on a DD I say. Turnbull will relish it and wipe the floor.
Alert moderator
Chris L:
16 May 2014 9:35:37am
The ALP has delivered a budget reply, as per normal convention. This particular argument is between federal and state government, which is almost entirely Coalition vs Coalition. What would you expect the ALP to do about it? (with the exception of the SA government)
Alert moderator
Catherine:
16 May 2014 8:47:00am
What a cynical article. So the non LNP Premiers were also complicit in this plot?
Alert moderator
barsnax:
16 May 2014 9:16:37am
Probably not Catherine but they aren't about to go to elections. Victoria, NSW and Queensland premiers would know and probably cooked up this plan with Abbott.
Alert moderator
Desert Woman:
16 May 2014 9:48:54am
You reckon? People care about their hospitals and schools and the Premiers know it. Getting an increased GST depends on total agreement (unlikely) and this certainly wouldn't be the first or only thing this govt has cocked up in the last few months.
Alert moderator
Big bob:
16 May 2014 8:47:07am
Even Blind Freddy can see that this is just a game for the Premiers to scream have a meeting and then agree to modify the GST. The only sticking point will be will Jay Weatherall go along with the LNP Premiers?
If the complaint is about dulication ofHealth and Education services I ask If these are State Responsibilities just what does Peter Dutton and Christopher Pyne and their Departments do in Canberra?
An obvious way to reduce duplication is to get rid of either the State or Federal Departments thereby removing the duplication..
Alert moderator
Martin:
16 May 2014 8:55:15am
Agree with author- sneaky LNP will be soon orchestrating GST increase and covering all food and other items not currently covered.
Alert moderator
Ben:
16 May 2014 8:56:20am
A carbon tax is dumped and replaced by an increase to the GST. A tax on polluters giving an incentive to the change to a clean energy economy is replaced by a tax on all of us. This is just plain nuts.
Alert moderator
Tory Boy:
16 May 2014 9:15:09am
The carbon tax was intended to shift the economy to alternative sources of fuel; it didn't work. The polluters were allowed to trade their credits away and therefor keep polluting; the consumers (labor voting ones anyway) were compensated for increased charges so had no reason to change their behaviour.
I think the fuel changes will do more towards reducing consumption than any other policies offered so far, even if that was not the intention...so, if you supported the carbon tax for its environmental benefits, you must support the rise in petrol charges as well..
Alert moderator
Dove:
16 May 2014 10:26:10am
Good point.
Alert moderator
Elephant:
16 May 2014 11:17:25am
I'm not so sure.
It's not correct to say the 'carbon tax' did not work across the board - emissions in the electricity sector, for example, dropped by 7.6% in 2012-13. That's pretty impressive if you ask me.
Also, I'm not convinced that fuel prices will have the effect you suggest: petrol has gone up in price enormously since 2003 - it would be interesting to look at whether these price increases have had a significant impact on car usage.
Alert moderator
Graham27:
16 May 2014 12:15:27pm
I think you will find the strong $A crimping high energy input exports had as much do to with reducing electrical consumption as anything else.
Alert moderator
din:
16 May 2014 9:02:15am
unless labor has said how they were going to find the 80 billion in 2024, why not be realistic and say the money was never real.
Its as if labor promised that no child will live in poverty in 2024 since everyone will get 1 million dollars that year, then the liberals cancelled the million dollars since its unaffordable. People are blaming the liberals for losing them their million dollars, but the fault lies with labor for making unfunded promises.
Alert moderator
Desert Woman:
16 May 2014 10:44:28am
Din, have you heard of a budget? It's where the govt shows all the ins and outs of the money. That what the ALP did in govt and it was all open and above board. You may believe in a debt crisis but millions don't.
Alert moderator
Drum Major:
16 May 2014 9:02:42am
Raising the GST isn't going to achieve much without rethinking what the GST is applied to. We already know that revenues from the GST are in decline because of the internet.
Alert moderator
GJA:
16 May 2014 11:44:07am
When you're paying GST on your weekly food shopping to feed your family you'll know where the revenue will come from: the mouths of your children.
Alert moderator
Theos:
16 May 2014 9:08:14am
Maybe I'm naive, but I believe that the State Premiers really were caught off guard with this sneaky move by Tony Abbott.
Alert moderator
jusme:
16 May 2014 9:11:22am
The thought did cross my mind. We'll see how it pans out.
Good to see a right winger explaining the real way the metaphoric "pie" is grown. By commoners paying more one way or another. New taxes or lower minimum wage. Unfortunately the "pie" still will be fed to the fat cats first where they take as much as they want as per the rules they've set up.
The distribution of the "pie" needs fixing and people working 40 hrs doing a tough job for a soon to be lowered minimum wage deserve far more of it.
Alert moderator
Harquebus:
16 May 2014 9:16:50am
A conspiracy to raise the GST by reducing funding does not compute unless, the increased revenue is greater than that lost.
Personally, I can not spend any extra. Any increase in my tax burden will be taking money away from myself which, would have been spent entirely at my local stores and local businesses.
Alert moderator
Ben:
16 May 2014 9:16:59am
A carbon tax is dumped and replaced by an increase to the GST. A tax on polluters giving an incentive to the change to a clean energy economy is replaced by a tax on all of us. This is just plain nuts.
Alert moderator
AndrewP:
16 May 2014 9:25:21am
We already work 2.5 days out of 5 for the government in the way of hidden and visible taxes. Why should we work 3?
Alert moderator
Peter59:
16 May 2014 9:29:44am
I agree with Ben, LPN tax individuals to do the heavy lifting while companies can shovel profits in the bank to finance new investment and growth. I didn't see the companies pulling out their treasure troves when the GST hit. It is governments who do the heavy lifting in times of trouble and they take their taxes from all segments of society which business is a 30% part. The tax system should not be skewed due to political leaning. To remove a mining tax when companies have invested and are moving into record production and remove an ETS which would develop additional industries and replace it with a plan to raise GST is ridiculous and seems like a kindergarden idea to me.
We were told by John Howard and economists that the GST would never raise above 10% as they campaigned for its introduction, with rising populations and growth it is a growing tax, what happened?
Why do we need medical research ahead of preventative health education which would yield far greater returns for the budget $.
Alert moderator
Jungle Boy:
16 May 2014 11:06:01am
"never above 10%"
I cringe whenever politicians promise "never" do a particular thing.
Never is an infinite period of time and is unforeseeable. They're just painting themselves into a corner and setting themselves up for failure.
Alert moderator
Coogara:
16 May 2014 9:42:25am
An increase in the GST is the only way health and education services can be provided to the public. Nonetheless, state governments need to balance an increase in GST with more user pays schemes. For example, the Federal government has provided the option of charging for out patients in hospitals particularly where the service can be provided at a medical centre. There is no reason why selective schools and state schools in affluent suburbs should not charge fees.
Alert moderator
Dove:
16 May 2014 10:25:15am
A user pays education system? It may well come. I think this is an orchestrated outrage, and it's clever politics. The states get to advocate a GST increase without copping the blame from their electorates. Personally I think that they could just take a bigger slice of the poker machine pie and means test absolutely everything: hospitals and possibly, as you suggested, schools. Whilst the Feds are at it they could levy a tax on the winnings of gambling, which currently goes untouched.
Alert moderator
GJA:
16 May 2014 11:47:16am
I think that's the idea: user pays. When education is user pays, only the wealthy will be able to afford higher education, so they will be able to take up the jobs that come with the higher pay more so than the poor or middle class, who might otherwise aspire to better themselves. When quality education is user pays, only the wealthy will be able to afford a good education, so everyone else will be too stupid not to vote for this mob again.
Alert moderator
anote:
16 May 2014 9:47:07am
Very, very, very unlikely that the states leaders are already in on the act. Is she serious or loony or stirring the loonies.
"It's not too long a bow to imagine Abbott holding a private meeting with the Liberal premiers ..."; that is so but that they are already in on the act is way, way over the top.
It is very likely to be a wedge. Dishonesty is one thing but containing big conspiracy in not within their capabilities and the state leaders have too much to lose.
One thing is fairly certain. Abbott and Co are not being open and transparent. The alternative is to believe that they are setting the states and Australia up for a fall. Anyway, forcing the states, by stealth, to introduce great big new taxes to avoid doing it themselves still constitutes dishonesty.
Alert moderator
SimonP38:
16 May 2014 9:47:47am
The austrlian people want the govt to provide certain services. Health educaiton welfare ets.
It cost a certain amount of money to provide those services.
We have a toxic political culture that says that makes it difficult to raise tax, as the tax is always characterised as a seen as a "punishment" or an "attack" Not paying for govt services.
The fact is that recurrant govt services should be paid for by recurrent revinue not by asset sales/ leases / what-ever-spin-you-want-to-put-on-transferring-public-assetts-to-the-private-sector.
Using debt to fund recurrent expenditure is the road to ruin.
The Current Fed Govt Debt is about $180bn. The cause of this debt is the $31bn tax cuts of 2008 promised by Mr Howard and delivered by Mr Rudd. In a situation where the income form mining taxes etc suddenly decreased due to the GFC and expenditure continued to increase.
Put simply $31bn x 7years+interst = close to the currentl debt.
If Aust doesnt want to reduce govt services/welfare. Aust need to raise its revinue. There are two possibilities.
1. Raise the GST.
2. Reverse the 2008 tax cuts.
Any politician who sugests thsi will be met with a barage of negative spin as outlined above.
And so we slide into uncontrollable defecit and govt service cuts.
Alert moderator
anote:
16 May 2014 10:56:22am
The Coalition is mainly responsible for that toxic culture.
Raising the GST would actually penalise those who have made savings.
A debt tax on the rich is fair in principle given the context of 'spreading the burden' to counter the other measures. However, it does appear to be somewhat tokenistic in application.
It is the package based on lies that is the problem and adds to the toxicity.
But basically SimonP38 is right. However, the Coalition is not interested in forming a budget designed to provide an economy that Australians might want. It wants that to be left to the market. They are also now describing welfare are supplementary payments as if the recipients do not deserve it because they have not earned it. They thereby fail to appreciate one of the failures of a 'free' market economy and the responsibility of government to govern for the benefit of society.
Alert moderator
Evan:
16 May 2014 9:48:00am
Don't forget the role of the media cheersquad saying the 'tax base must be broadened' (but not so companies pay more - indirect taxes which fall more heavily on the poor should be the only option considered).
Alert moderator
themoor:
16 May 2014 10:01:00am
WA Premier Colin Barnett has indicated fairly clearly that he is in favour of a GST increase.
Increasing a regressive tax instead of dealing with the tax evasion and tax rorts that are causing the decline in revenue is gutless. It is a cowardly decision.
Alert moderator
Bev:
16 May 2014 10:53:23am
It is hard to evade GST. Raising GST and lowering income tax means there is less evasion. Big earners spend more anyway so they do pay more tax(GST) anyway.
Alert moderator
Desert Woman:
16 May 2014 1:16:14pm
It's very easy to evade the GST Bev, plumbers, electricians etc just do more jobs for cash in hand. Farmers sell more from the farm gate for cash. Govt won't get a penny. The black economy always grows when times get tough
Alert moderator
The Other John:
16 May 2014 5:20:02pm
Farmers sell from the farm gate? Who to, DS? Other farmers? You need to get out of the city more and see how remotely most farmers live.
Alert moderator
Esteban:
16 May 2014 2:36:48pm
WA currently receives about 38 c of every $1 in GST raised in the state.
The WA share of GST is forecast to fall down to about 10 c in the dollar in the next decade or so.
I doubt there will be much appetite for an increase in the GST amongst WA people if they can't retain it within the state.
Perhaps this will represent an opportunity for the way the GST is shared to be reviewed so something that recognises the large infastructure requirements of the mining/growth states.
After all, does it not have to be unanimous for any changes such as an increase in the GST rate?
Any premier of WA who agrees to an increase in GST without amendments to the way it is shared will be electorally slaughtered.
Alert moderator
Gr8Ape:
16 May 2014 10:02:25am
Wouldn't making the states more reliant on GST revenue (expanded or otherwise) realign it's distribution more towards population while maintaining horizontal fiscal distribution since the states generally provide the services that have a cost relatively proportional to population?
Would an increase in the GST rate put upward pressure on inflation and consequently wages (unless you actively suppress them of course)?
Alert moderator
Drum Major:
16 May 2014 10:13:01am
Listening to Mike Baird being interviewed right now and I have to say that I think you've nailed it Paula.
Alert moderator
observer:
16 May 2014 10:17:05am
An increase in GST has always been in their planning. The LNP cannot be trusted, they say one thing then do another. An increase in GST is the only way the States will be able to fund health and education - another huge increase in taxation and another huge increase in the cost of living. followed by an increase in interest rates. The LNP are totally out of touch with reality, they still believe that the unions are at the root of all the problems. I don't think they have thought any of this through, meanwhile the rich and the well off carry on as if nothing is happening.
Alert moderator
MD:
16 May 2014 10:20:06am
I daresay that Abbott and Hockey are grinding their teeth about Howard and Costello having set it up in such a way that a single dissenter can veto. An SA government (or even, such is politics, an opportunistic hairline Liberal government) veto, say, will be irresistibly attractive, which would mean that the only way it could be done is either by bribing the dissenter, which would be more obvious than improbable, or by amending the federal legislation - which would have to be pushed through by the federal government, and the composition of the new senate doesn't guarantee that, either.
Alert moderator
Kitty:
16 May 2014 10:23:29am
My thoughts exactly and at long last a journalist to call it.
Every thing is sneaky, vindictive and lies with Abbott and the LNP, there is no such thing as open and honest or let's debate the pros and cons and include the voters. The government for self interest plans to tax ordinary Australians and tax hard.
The plan is to divide and conquer. Keep the punters anxious and afraid, present Gillard/Labor as the root of all evil then have Abbott ride to the rescue as the hero who " feels their pain ".
The discontent and anger is growing and Abbott's lies are catching up with him. Trust is gone.
Alert moderator
John51:
16 May 2014 10:48:59am
Paula, if the state Premiers are playing this double edged game than they may find this comes back to bite them in a very big way. The trouble is you can't play such a game as that in politics these days even though many still seem to try.
These day when you play these games it always comes out. There is always someone with payback in mind or playing their own political game who will leak it. I would not even trust Abbott and Hockey after the fact not to leak it if it suits their own political advantage at the next election.
I think the first rule in politics is never to trust anyone, especially your own side. And how many times just in recent history have we seen the failure of politicians not following or understanding that rule. It has seen more than one fall from grace.
Alert moderator
micka:
16 May 2014 10:49:01am
About time we debated the GST. Here's my contribution: extend it to food and raise it to 15%. That will help us properly fund health, education and welfare.
Alert moderator
colin67:
16 May 2014 10:49:37am
They will show indignation until they have there state elections
Alert moderator
MJLC:
16 May 2014 11:20:45am
Why, oh why, is it always necessary to argue these things in terms of two diametrically opposed propositions?
Ms Matthewson revisits the age-old question of conspiracy or cock-up, and limits herself to only one of the two possibilities on offer.
Take a closer squiz at the photo accompanying the text and tell me that a conspiratorial cock-up isn't easily the front-runner for describing the agreed outcome when these particular identities meet together under one roof.
Alert moderator
Bemused sceptic:
16 May 2014 11:49:34am
With the problems already visited on State budgets, eg removal of support to reduce emergency room waiting times, will all these leaders be there for the deeper negotiations next year and beyond?
Alert moderator
Artful Dodger:
16 May 2014 12:19:01pm
Of course you are absolutely right Paula- this lot remind me of a smiling assassin who smiles in your face while stabbing you in the back.
You make an excellent point about the size of the pie-the problem is the pie is so full of toxic ingredients it is about to explode. We shall end up covered in ****.
But there is more to this than just the GST- Tony Abbott is an ideologue - he is rusted on the American system- he wants to revamp our Federation along the lines of system of State responsibilities and taxing powers.
God help us - their system is shot-many are still fighting the civil war and their politics are controlled by BIG money. Do we really want their levels in inequality-their health and education systems?
A health system which sees an elderly lady who had a by pass procedure forced to leave the hospital the morning after the procedure because her insurance did not cover post procedure care? She could not walk or feed herself- her son was forced to sign over his house to the hospital before they agreed to transfer her to a nursing home.
Or an education system where the majority of parents who were asked what they would do if they had a child who was a homo sapien-replied - chuck him/her out!!
As I said- God save us from the Abbott penance.
Alert moderator
Reinhard:
16 May 2014 12:20:23pm
It wouldn't be the first time state and federal Coalition govts were secretly in cahoots. We saw during the last four years they conspired to delay and sabotage signature Labor reforms like Gonski, NDIS and the MRRT.
Then last year Abbott decided to steal Gonski and the NDIS and suddenly they were more than compliant.
Go figure...
Alert moderator
Graham27:
16 May 2014 12:24:52pm
Most of the bloggers on the ABC sites want more spent on health, education and social programs. A GST at 10% just want fund the wish list in future (2020 onwards). Income tax can't carry the burden as the work force is declining relative to welfare recipients. So along with tighten of negative gearing claims, family trusts, taxing income from super etc the GST going to 12 or 15% is inevitable. Look on the bright side: in Denmark (often held up as a model by some) has a GST of 25%! NZ is 17% and it is on everything! Our is just too low and there are too many exemptions. The tone of many of the blogs here tells me "the truth well told" in that GST is needed to fund services and it has to be more than 10% is not well received. No wonder politicians tell porkies! We bring it on ourselves. Just ask John Hewson, who probably had the most honest election manifesto in the 20 century.
Alert moderator
firthy:
16 May 2014 12:28:16pm
Paula you might be right. Personally I could wear an increase in the GST and a broadening of the base if it is used to fund health and education. After all the funds required to meet the increased funding of each which is being discussed here have to come from somewhere. It is clear that our present tax system won't provide enough money - as such we either reduce funding of each; raise taxes or slash funding of other programmes (or a combination of all three). The ALP didn't do any of these whilst they were in government even though I have no doubt they were aware of the issue. And that is poor.
Alert moderator
muzz:
16 May 2014 7:24:13pm
Or else we can simplify the Tax system to reduce avoidance and do away with welfare to those who are wealthy enough not to require it. Then we can introduce laws to prevent companies off shoring their profits to tax havens or making family trusts pay taxes at either company or PAYE rates.
If we are going to broaden the GST base why not include financial transactions such as the sale of shares or purchasing of foreign currency as these are the same as buying a TV or food or paying GST foe an accountant doing your tax.r. But right now I hear the Neolibs screaming you can't GST our markets because it might our wealth.
The sale of houses should also be included in an expanded GST politically unpalatable because your taxing our houses but isn't a house just another form of goods. If the LNP is worried about it affecting new home owners maybe set an exemption on exemptions up to $400 000 on residential homes for the buyer to habitat but not on investment properties.
After all if you have a GST the only proper way to have is on everything not pick and choose but by broadening it the way I say would upset those wealthy people who support the LNP
Alert moderator
John in Brisbane:
16 May 2014 12:34:58pm
Paula,
I don't know if you're right but it's what I was thinking this morning. Fools seldom differ but I prefer "great minds think alike" :-)
Newman is closely associated with Abbott's outlook on life. For him to be jumping up and down like this isn't right. And the way he is talking doesn't sound right. It sounds a bit like parents saying something for the benefit of the eavesdropping kids. Which is another example of his close association with Abbott's outlook on life.
Bring on a double dissolution election. It won't happen because Palmer is only talking the talk - he's going to vote with the government when it counts.
cheers John
Alert moderator
JohnnoH:
16 May 2014 12:51:20pm
Isn't it a pity that within the next 10 months 3 state elections due, one them before the end of the year. Isn't a pity that these three state have tory governments at the moment. Isn't a pity that these three states will have to plead for an incease in and/or broadening of the GST to meet the shortfall of the cuts? Isn't a pity that the state that has to go to the polls first has a majority of 1. Isn't it a pity that the tory government in Canberra are throwing there tory colleagues to the wolves.
Alert moderator
Mike (the other one):
16 May 2014 1:31:24pm
At the political level of Prime Minister or Premier there's generally some pretty big egos to massage, they want to go down in history and be remembered for something.
Abbott has made it clear that he wants to be remembered as the infrastructure PM and Newman for one isn't far behind him.
In order to raise the revenue needed for those projects it has become increasingly clear that they will do whatever is necessary. But they also have to do just enough to make themselves look like the good guys (it's not working too well for Tony) while making sure they're appeasing their mates at the top end of town.
Based on all that I reckon there's a pretty fair chance we?ll see an increase in GST.
Alert moderator
NotMyName:
16 May 2014 1:53:19pm
Margaret Thatcher cut income tax and then put up the UK version of the GST to gather more tax from the lower paid; PM Abbott is just using the states to back up his claim he isn't putting up taxes, no government will truly cut taxes, they will just call it another name. Time to cut spending by removing the five billion a year of taxpayer funded speculation of negative gearing, it wont happen because none of the political parties can understand the immorality of allowing speculation on housing, I can't understand why there hasn't been an outcry against the high price Australians pay for buying or renting a home caused by taxpayer funded speculation.
Alert moderator
Daronil:
16 May 2014 1:56:03pm
Yep. The Premiers can blame Abbott, and Abbott can blame the Premiers. All of them can wash their hands of a broadening of the GST to further punish low-income earners, pensioners, students, the disabled and the unemployed for not voting Liberal.
Alert moderator
Tropicalcat:
16 May 2014 3:44:24pm
Repeat after me. These are NOT cuts. This is future money that never existed except on a treasury spreadsheet. It was another one of the Rudd/Gillard fantasies.
Even with these "cuts" the budget for for both education and health will increase in real terms.
The premiers should be told to grow up.
Alert moderator
muzz:
16 May 2014 7:27:57pm
You refuse to acknowledge a cut is a cut just like Debt levy is really a tax increase.l
Alert moderator
p.a.travers:
16 May 2014 4:19:37pm
Paula!You must be a part of a chorus line that knows where the real victims lay.So what about all those GST collectors,who will see that go up on their products and services sold etc.!? There is no GST on your opinion that missed completely the collectors of the tax.Heaps of leg work for Abbott,maybe,he will need a thermal flask,because the lower waged restaurant worker and boss,will find it too costly to boil the billy,with the new level!?
Alert moderator
Alice:
16 May 2014 4:36:56pm
Liberal Election Promises: No New Taxes, No Cuts To Education and No Changes To Medicare which they are obviously broken their promise. You say "For every state that gains more GST revenue there will be another that gets less, so the only way for all states to get more (in actual terms) is for the overall pie to grow. " Does it means health and education need to be covered by the GST to improve the redistributive potential of the GST ? ?
Alert moderator
Not Such a Golden Oldie:
16 May 2014 5:04:29pm
It probably made sense at the time of Federation, when communication and movement throughout the nation was much more difficult, but having the division between a central government and separate state governments and local councils/shires is crazy in this day and age.
My preference would be for a two layer system a central government and local governments larger than the existing councils, but smaller than the state governments. I also think that authority to tax needs to be devolved more to the government that does the spending. The system we have now leads to rampant blame shifting.
If we are lumbered with the present structure of central, states and local governments (as I suspect we will be for a long time ahead) then the next best thing would be to remove the present constitutional impediments to the states being able to raise income taxes and consumption taxes and to set the rates themselves.
Such a change would not absolve the central government from plugging the present leaky tax system, which is rorted by overseas tax havens, negative gearing on income generating properties and massive subsidies to superannuation.
Alert moderator
Mark James:
16 May 2014 5:12:14pm
And once more we have the language of derision and division to demonise those with opposing views.
Matthewson attacks "squealing" Premiers. Pigs squeal, not people. But you can make the link, even if subconsciously.
And true to Coalition form, the dissidents are feminised along stereotypical gender lines ("overacting in daytime soaps", "drama queens"). They are "hysterical" (from the Latin "hystericus", meaning "of the womb").
And what a rich vein this demonisastion along gender lines strikes. We know what happened to Gillard, of course, "Bob Brown's Bitch"/"The Witch". And even when Rudd took over, the Coalition and its media partners attacked him along similar lines - the stereotypical woman, talking too much, worried about his hair, fussing over his appearance. All of course, contrasted with the manly rock, Abbott, the strong but silent leader whose punch could settle a score faster than words ever could.
We'll have three years of this, of course. Hockey is already damning those not in full agreement with his Great Big New Tax as "screaming." Rational people do not "scream" when exchanging opinions, so we can infer that anybody who disagrees with Hockey is therefore irrational.
Ugly times indeed.
Alert moderator
Paul Taylor:
16 May 2014 5:32:59pm
Paula , as you highlight, in 2018 when the Federal government makes cuts to hospital & education funding to the states & territories it is not $80billion every year after but builds to $80billion in the financial year 2024/2025 (another 6 to 7 years further down the track)....Simply passing the buck on Health & Education to the States & Territories to make the Federal government look like good economic managers by reaching a budget surplus faster than their projected budget bottom line.
The Global Financial Crisis & its aftermath cost the Federal Labor Government $170billion in tax revenue; you would hardly expect a repeat in a global recovery phase over the next 6 years, particularly if you value add major exports iron ore, coking coal & gas 3 fold with the PRIVATELY funded EWLP $45 B Project Iron Boomerang which would produce the cheapest slab steel in the world for both export ( not just a dependence on China) & steel based manufacturing industries in Australia. The mining industry is compensating for any fallout in China demand through production cost efficiencies & economies of scale ( less labour & greater use of robotics); gas production & international demand for it is projected to boom.
Treasurer Joe Hockey says mining produces 10% of GDP but only 2% of employment but where is the assistance to Tourism which is Australias biggest employer ( directly & indirectly). Less emphasis required on costly roads & more emphasis on creativity like the formation of national travel centres in each of the capital cities (states & territories working together but still independent, use of government land but leased to private enterprise who construct, manage & maintain the infrastructure; all parties benefitting from increased revenue potential).
Do we need a Medical Research Future Fund or do we simply not privatise Medibank Private & do away with GP co payments by alternatively allocating ongoing government dividends from Medibank Private in excess of $300m a year to additional medical research?
GUESS what it does not require wholesale privatisation, maintenance of the status quo, broken promises, adherence to ideology, abandonment of Federal government social & environmental responsibilities, fabrication & manipulation of the truth to maintain a strong economy & a return to surplus for governments in Australia. If your selling so called government lazy assets (big capital investment but low rate of return) to reinvest in new business orientated profit productive infrastructure assets, you the public will pay in higher prices that will further affect your cost of living....business investors do not pay big money for nothing ....after all the user should pay according to the Coalition.
Alert moderator
Paul Taylor:
16 May 2014 5:34:56pm
Could not you simply reform the tax concession base of superannuation to make it more equitable & in the process engineer it to encourage greater investment in new infrastructure?
Paula, totally agree with your assessment of a hidden GST agenda by the Federal Coalition & the Coalition states & territory (NT)....to that I would add their backers! If you are a member of the voting public ( seniors, students, job seekers, families, motorists & those hit by a token levy on the rich) & are already seriously negatively impacted on your cost of living & life style by the May 2014/2015 Federal Budget then consider the impact of the current GST rate rising from 10% to 12.5% ( $13B in increased revenue to the states & territories); broadening the GST to apply to fresh food ( additional $6.5B); health & education ( additional $3B each)....total $25.5B based on financial year 2014/2015 figures. Couple this with the Coalition industrial relations agenda push for lower wages & conditions of employment & the introduction of changes to the GST as outlined above in 4 years time (or sooner).....a virtual cash cow to the states & territories generating additional tax revenue far in excess of balancing most state & territory budgets, with most likely this time around little compensation for households & industry, but impacting dramatically on cost of living pressures & quality of life for the ordinary citizen. It is ironic that the Republicans in the US are totally opposed to introducing a national REVENUE NEUTRAL national GST on the retail value of goods & services similar to that implemented by Australia when they actually do have a budget & debt emergency!
The states & territories already know how much extra income will be generated from different versions of changes to the GST & its social impact...The ACT & SA need to take a stance against introduction of so called considered necessary changes to the GST by referring to a trumped up Tax Commission of Audit at this point in time or play into the hands of the Federal Coalition & Coalition states & NT. Make it an impending election issue for N.S.W, QLD & Victoria. Labor Leader , Bill Shorten, will be pressured by the Coalition to come up with an alternative....a REAL alternative with far less pain for the public, as yet not canvassed, will leave the Coalition (federal, state & territory) high & dry for they have already eaten away much of their political capital with the public.
Alert moderator
rockpicker:
16 May 2014 6:05:25pm
I don't think you grasp how hard this federal reform will be. The states have had a fair caning in their revenue base and with expansion of federal theft and loss of powers by Howard. They also have a greatly increased amount of mainstream education of high needs students brought about by Canberra's shift to private. States such as NSW and Victoria also get ripped off with the GST (and WA and Qld still get more than they should). No, this is an attempt to make the stats cop the blame for Hockey and Madmonkman's shenanigans. Baird and the Vics will be struggling here with elections coming up. Putting up the GST is likely to cost them a lot of support. Part of a Howard Costello poison pill in the GST laws.
Alert moderator
John Mack:
16 May 2014 6:10:17pm
Paula has got it, perhaps even Bill Shorten has got it as well. The theatrics might not just be restricted to the Liberals State and Federal. Bill can oppose 'furiously' and carve himself out some high moral ground, while knowing that the GST increase is a fait accompli. The name of the game from Labor's point of view I'd suggest is not to stop the GST increase, but to be seen to have fought it 'every inch of the way'. The added revenue would benefit Shorten as much as Abbott come the next election. But it would suit Shorten at that time to be able to point to the Liberals as the instigator of the first increase in the GST. And once it is increased once it opens the door for much easier increases in future, which again will suit both parties. The real difference between the Liberals and Labor is still whether the rich and the corporate are doing their fair share towards contributing to the common-wealth and it seems that this is the area that the Liberals are still most vulnerable on. But as for the GST, it's not a battle about stopping it, but rather a PR game about whether the public decides it's not such a bad thing, and if they don't like it, then who gets the blame for it.
Alert moderator
gp:
16 May 2014 7:19:21pm
And the soap opera continues with Baird now softening his opposition to the Abbott ploy. Its all kabuki theatre with the liberal premiers and the GST dance.South australia must be feeling left out , if it were not for the SA premier and the ACT Chief minister you would have a behind closed door stitch up.
Alert moderator
Comments for this story are closed.