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Murphy confirms GST is a job destroyer.

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The Hon Simon Crean MP

Deputy Leader of the Opposition and Shadow Treasurer


5 February 1999





The Prime Minister’s preferred tax modeller, Chris Murphy, today confirmed that the GST does not increa se jobs overall and will destroy jobs in many industries.


In evidence before the Senate GST Committee today, Mr Murphy’s attempt to paint a glowing picture of the government’s tax package was undermined by a number of important admissions.


Importantly, he confirmed that the GST itself will not create jobs. According to Murphy, any job creation flowing from the tax package will result from measures to reduce poverty traps — measures that do not rely on the GST.


In other words, Mr Murphy’s evidence shows that the job growth he asserts can be generated without the GST.


Earlier this week Professor Dixon of Monash University told the Senate Inquiry, the GST is “job destroying”.


Professor Dixon’s advice is now confirmed in Mr Murphy’s modelling, which showed a 10 per cent GST would cause “significant shifts in employment between industries”, with job losses in twelve out of eighteen industry sectors. These include, agriculture, forestry, retailing, accommodation, cafes and restaurants, transport, communications, education, health, community services and cultural and recreation services.


In separate advice to the Master Builders Association, Mr Murphy warned of long-term job losses in the housing industry of 2.4 per cent.


And Mr Murphy’s optimistic modelling does not include any allowance for the extra GST paperwork burden for the 1.5 million extra businesses caught in the GST net.


Mr Murphy also advised the Senate Inquiry today that Queensland and Tasmania would face job losses from the Government tax package. This must be disturbing news for Senators Colston and Harradine.


Further information:  Phillip Tardif (02) 6277 4045(w), (0419) 491 166