Politicians Debate GST Rate and Western Australia Tax Deal
- Reports
- 3
- Developments
- 1
- Repetition
- 67%
New informationRepeats or wire copies
What happened
Angus Taylor called for scrapping the contentious GST deal for Western Australia, while Josh Frydenberg urged a GST increase. Separately, the Grattan Institute recommended raising the GST rate from 10 per cent to 15 per cent and expanding it to include all food items to help pay down national debt.
Why it matters
The debate centers on Australia's fiscal strategy and national debt levels. The Grattan Institute suggests the proposed tax overhaul could generate $76 billion per year, which could fund tax cuts for low- and middle-income earners and increase welfare payments.
A 2018 GST deal for Western Australia was negotiated by Scott Morrison but was subsequently rebuked by the Productivity Commission.
Who's involved
- Josh FrydenbergPolitician who urged a GST increase.
- Angus TaylorPolitician who called for scrapping the Western Australia GST deal.
- Western AustraliaState whose GST deal is being debated.
- Productivity CommissionAdvisory body that previously critiqued Western Australia's economic policies.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Australian GovernmentSpeculative
The federal government might face pressure regarding its fiscal strategy and national debt management.
- Western AustraliaSpeculative
Western Australia might see its guaranteed minimum revenue share threatened if the contentious GST deal is scrapped.
- Reserve Bank of AustraliaSpeculative
The Reserve Bank of Australia might see national inflation and fiscal stability targets influenced by proposed GST changes.
Keep exploring
The entities involved
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Josh Frydenberg
Australian politician and federal treasurer
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Angus Taylor
Australian politician
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Western Australia
state of Australia