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What the Treasurer giveth in tax cuts he mostly taketh away in GST

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ACOSS Media Release Issued: 2pm, Monday 15 February 1999

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Media Release Media Contact:

Ian Wilson Mob 0419 626 155.

Australian Coun ci l of Social Ser vi ce

Level 2

619 El i zabeth St Redfern

Loc k e d Bag 4777 S t r a w b e r r y Hills NSW 2012

Ph [02] 5 3 1 0 4844

Fax [02] 9 3 1 0 4822

What the Treasurer giveth in tax cuts he mostly taketh away in GST

"ACOSS has exposed the Government's raw nerve — you don't need a GST on food to deliver substantial tax cuts to all taxpayers," the President of ACOSS, Michael Paper insisted today.

"The Treasurer and the media editorials are squealing because ACOSS has shown that the majority of Australians — those on low and middle incomes — will be better off if some (not all) of the Government's proposed income tax cuts are swapped so that food can be kept GST-free."

"What the Treasurer giveth in tax cuts he mostly will taketh away in a GST."

"In this way, much of the Government's income tax cuts are a mirage because increased costs at the supermarket will eat them up."

"It is not ACOSS that is undermining the tax cuts for low and middle income earners. The Government has taken half of them away already via the GST."

"At the same time, people on $75,000 and above are offered an excessively generous tax cut of $86 per week."

"Instead of the Government delivering excessively generous tax cuts to the rich and taxing food, we are simply saying that some of the tax cuts should be used in a way that benefits all Australians, particularly those on low and middle incomes, by keeping food GST-free."

"Under the ACOSS options put to the Senate last week, all taxpayers would still be paying less tax than they are now, low income families would be protected from a tax on food and the package would be much fairer."

"And the 89% of Australians earning less than $50,000 would still pay no more than 34 cents on any dollar they earn," concluded Michael Paper

A full copy of the ACOSS Main Submission to the Senate GST inquiry — Making the Tax Package Fairer is available from the ACOSS office. The Executive Summary is a available on the ACOSS website: a c o s s @ 3 c o s 5 .o r g . a u >

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