No increase to the GST

If elected in March 2018, a Marshall Liberal Government will oppose any moves to increase the tax burden on South Australian families and businesses through the GST.

The Problem

South Australian families and businesses already face significant cost pressures.

These pressures can severely impact on quality of life for people and families. They also affect the ability of businesses to invest more in job creation.

The tax burden on individuals, family household budgets and businesses is a key contributor to these pressures.

In early 2016 there was a nationwide public debate about increasing the rate of goods and services tax (GST) from 10% to 15% - a 50% rise in one hit.

The Federal Government ruled out the proposal because there would be no significant economic benefit. The need to provide compensation to ensure the change was equitable meant it could not be justified economically.

The South Australian Labor Government, however, openly advocated this massive rise in the GST rate.

In doing so, Labor admitted it had not undertaken any economic modelling of the impacts.

In other words, the Weatherill Government wanted us all to pay much more in GST without giving any thought to how this would affect people, families and businesses.

But that’s the Labor way – to continue increasing the overall tax burden on all of us.

When the Howard Coalition Government introduced the GST as a tax reform measure, many other taxes were reduced or abolished.
That’s the Liberal way, to limit the tax burden.

Massive tax hikes without government belt tightening are lazy and unfair.

The State Liberals Plan

If elected in March 2018, a Marshall Liberal Government will oppose any moves to increase the tax burden on South Australian families and businesses through the GST.

This includes:

Any increase in the GST rate from the current 10 percent 

Broadening the base of the GST to include goods and services that were excluded when the tax was introduced

Applying the GST to financial services and products, such as home loans, credit cards or other personal loans

A Marshall Liberal Government will also protect South Australia’s position in the current process of Horizontal Fiscal Equalisation (the distribution of funds to the states and territories by the Federal Government), ensuring our State receives its fair share.

Our health and education systems are in desperate need of reform that directs funding to frontline services and reduces unnecessary bureaucracy. This is the way to improve service delivery without costing taxpayers much more.