Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Voters losing confidence in GST.



Download WordDownload Word

image

 

Media Release

 

National Tax & Accountants’ Association

Level 14, 499 St Kilda Road, Melbourne

Internet: www.ntaa.com.au ,

 

Voters losing confidence in OST

 

Reports in the newspapers this morning that voters are losing confidence in a GST comes as no surp rise to tax experts who have worked Lender a GST taxation system for many years. Countries which have introduced a GST have consistently and repetitively failed to achieve their objectives of fairness, simplicity and relatively low cost of compliance in collection.

 

According to Ray Regan, President of the National Tax & Accountants Association, a GST will be rejected by the Australian public as any consumption tax is irrefutably and undeniably unfair where:

 

1. It does not have any regard to capacity to pa y. It is a harsh flat rate of tax. Not a progressive the more money you earn the more you pay type of tax’;

2. It places a heavy burden on low-income, sick and aged people. It would basically apply to 100% of their income because they have to use all of their income in meeting basic personal living essentials.

3. Expenditure on consumption is definitely not a logical basis for assessing tax because different individuals with similar incomes and capacity to pay may have differing levels of consumption expenditure due a wide range of factors including (not exhaustive)

* age, illness. lack of access to affordable transport to travel to supermarkets or shopping centres for example where goods and services may be purchased at lower cost;

* in remote country areas freight costs well substantially increase ordinary living costs unfairly;

* where they suffer from ailments such as skin cancer, diabetes, coeliac etc. it is often necessary to purchase special food, or clothing or other essential items which maybe up to 50% more expensive than purchases by people without those ailments;

* lack of spare cash prevents them for reducing consumption expenditure by buying in larger quantities, for example dozen lots rather than in single units, or by buying larger packages, at unit prices which may be as much as 20 or 30% below the cost of small quantities;

* they live in certain parts of Australia which normally experience very hot climates making it necessary for them to expend considerable amounts on airconditioning unlike other people living in temperate climates: and

* in traumatic times of death of a member of the family, it makes it necessary to spend an amount of $3,000 or more on funeral expenses. Under a GST this means the additional payment of several hundred dollars of tax which expenses are not exempt or zero-rated etc

 

Sunday 17 May, 1998

 

Ray Regan, President

Mobile: 0418 320 751