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Sydney commuters interviewed for their reactions to Liberal Party's consumption tax proposals

PETER THOMPSON: Sarah Armstrong asked Sydney commuters this morning, for their reaction to the consumption tax proposal.

SARAH ARMSTRONG: Federal Opposition's finally opted for the consumption tax - do you think that's a good idea?



UNIDENTIFIED: Because only those that are affording luxuries, are being charged the tax, so I have the option to buy or not to buy.

UNIDENTIFIED: Well, I think if it hurts the poor, it's not. I think there's too often a tendency to ignore the weak and the impoverished, and any tax that penalises them, I think is immoral.

UNIDENTIFIED: I think it's a more fair system. I think it's across the board - people have to pay tax. At the moment there are a lot of people not paying, then I'm with a family and I seem to be paying tax for other people that aren't.

UNIDENTIFIED: No, I don't think it's a very good idea. It's going to increase inflation in the short term. In the long term, if they change the tax mix, it will be a good idea, but people in the real world don't know what consumption tax really means, and how it's going to affect them.

UNIDENTIFIED: Not really. Any new tax that governments introduce, I get very cynical about. I just wonder what they're going to take away and what they're going to give back.

SARAH ARMSTRONG: They say it might mean a lowering in income tax rates. Would that be a worthwhile trade-off?

UNIDENTIFIED: Well, it'd be a great trade-off if you could believe it.

PETER THOMPSON: People on their way to work in Sydney.