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Thread: 15% GST proposal, good, bad or is it a non issue?

  1. #1
    Senior Member Scooby Steve's Avatar
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    Default 15% GST proposal, good, bad or is it a non issue?

    The 15% GST proposal will it be an issue for you and your business?

    I know not all reading this charge GST but lets face it once your business takes off you'll have to. The GST threshold isn't a lot of money in today's world lets be honest.

    Looks to be on the agenda again are you for it or against it?

    Will it effect business at all?

    For mine i have a problem with it as it will effect any pay rises we want to bring in for that financial year.

  2. #2
    Senior Member Scooby Steve's Avatar
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    Default Re: 15% GST proposal, good, bad or is it a non issue?

    Quote Originally Posted by Scooby Steve View Post
    The 15% GST proposal will it be an issue for you and your business?

    I know not all reading this charge GST but lets face it once your business takes off you'll have to. The GST threshold isn't a lot of money in today's world lets be honest.

    Looks to be on the agenda again are you for it or against it?

    Will it effect business at all?

    For mine i have a problem with it as it will effect any pay rises we want to bring in for that financial year.
    Not to mention the cost of living increase that it will bring. The place is expensive enough to live in already.

  3. #3
    Senior Member geoff's Avatar
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    Default Re: 15% GST proposal, good, bad or is it a non issue?

    unfortunate the previous government like most labour Govts sent us nearly broke so to address the shortfall required we need to get in some coin....increasing the GST is one way and to offset pain some sections of the community are given rebates...being a gst registered business our cost don't change as we can claim the amount back...where it becomes unfair in our game is the ones that are not registered for gst because we have to pass the increase on where they dont..I believe all business should be registered for GST thus making a fair [playing field for all...
    There are other ways of course to address the deficit like ...no cash....limit foreign aid...limit government spending waste etc...GST increase is easy because we do all the work in collecting it...

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    Member of forum ASTRO's Avatar
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    Default Re: 15% GST proposal, good, bad or is it a non issue?

    The GST is a regressive tax taking money out of the economy + making the cost of doing business/living more expensive - Lazy tax reform.
    No positives this end - Cheers.

  5. #5
    Senior Member imoww's Avatar
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    Default Re: 15% GST proposal, good, bad or is it a non issue?

    Its bad enough with the 10% . ive got some clients ( Believe it or not) that complain about having to pay the extra $5. (GST).
    Everything looks good with a haircut.... ɐuıɥɔ ɯoɹɟ pɹɐoqʎǝʞ ɐ ʎnq ı ǝɯıʇ ʇsɐl ǝɥʇ sʇɐɥʇ

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    Member Macka's Avatar
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    Default Re: 15% GST proposal, good, bad or is it a non issue?

    If they do put the threshold up to 100k i will piss my pants with excitement.

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    Senior Member seliment's Avatar
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    Default Re: 15% GST proposal, good, bad or is it a non issue?

    As I see it, the GST is a tax paid by the end consumer (purchaser)and collected by the seller.
    If the consumer is a business, then they can claim it back, and they effectively cost them nothing.
    If GST is increased to 15%, then the out-of-pocket to a consumer (unless they are GST registered business) will rise by about 5% and following the usual economic theory of price elasticity, there will be buyer resistance and some ppl will buy. That is, unless they have more $'s in pocket which can only come from a reduction other taxes and charges -- not that likely if govt is on chase for money.
    IF, there is are reduction in income tax, then some might have more money in pocket, but ppl like self funded retirees will not as they are not paying income tax. Probably similar applies to pensioners.
    Fundamentally, these sectors of community will be contributing more to tax tskeof govt.

    Now the better off often spend some of their discretionary spending on things like overseas holidays (& other services which attract no GST). The 'average fred' holidays in Aust and pays GST on their holiday costs.
    Likewise, if a rise in GST rate comes with a drop in Corp tax rate, once again it will be the overseas corporates who will end up contributing even less to the tax bucket.
    Do we Australians have to pander and grovel to them that much and 'be grateful' that they come here, give some of us a job on the most miserly terms possible (on the context of having to be internationally competitive), and then spirit all the profits after paying minimal tax, to their offshore havens. Also DON'T FORGET. that if these companies EXPORT their product, no GST is collected as export sales are GST exempt.

    My bottom line conclusion is that increasing GST rate screws the less well off and benefits the well off and big corporations. I can't see how it increases 'economic activity'.
    In any case it is a regressive tax.
    So I am against increasing, but maybe it should be widened to include some things like overseas travel / airfares.

  8. #8
    Senior Member Arfa Brayne's Avatar
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    Default Re: 15% GST proposal, good, bad or is it a non issue?

    Quote Originally Posted by ASTRO View Post
    The GST is a regressive tax taking money out of the economy + making the cost of doing business/living more expensive - Lazy tax reform.
    No positives this end - Cheers.
    +1 from me.

    Increased GST = Giving greater drive to the "underground economy".
    "Can't" is a dirty 4 letter word.
    If someone says "Can't" , take the "T" off the end and brew it.
    Sip on a mugfull, relax, and take a look at what you've got left to work with.

  9. #9

    Default Re: 15% GST proposal, good, bad or is it a non issue?

    Quote Originally Posted by ASTRO View Post
    The GST is a regressive tax taking money out of the economy + making the cost of doing business/living more expensive - Lazy tax reform.
    No positives this end - Cheers.
    Of course! It's too hard to chase the Tax that should be paid so they do it the easy way - effectively take from the poorer end of town while the top end does not hurt anywhere as much.

    The more you spend the more you pay. How do you think pensioners and people with limited income feel?

  10. #10

    Default Re: 15% GST proposal, good, bad or is it a non issue?

    Quote Originally Posted by Scooby Steve View Post
    The 15% GST proposal will it be an issue for you and your business?

    I know not all reading this charge GST but lets face it once your business takes off you'll have to. The GST threshold isn't a lot of money in today's world lets be honest.

    Looks to be on the agenda again are you for it or against it?

    Will it effect business at all?

    For mine i have a problem with it as it will effect any pay rises we want to bring in for that financial year.
    It has got me looking into building a house before the next election> will be up to $20000 cheaper

  11. #11

    Default Re: 15% GST proposal, good, bad or is it a non issue?

    Quote Originally Posted by geoff View Post
    unfortunate the previous government like most labour Govts sent us nearly broke so to address the shortfall required we need to get in some coin....increasing the GST is one way and to offset pain some sections of the community are given rebates...being a gst registered business our cost don't change as we can claim the amount back...where it becomes unfair in our game is the ones that are not registered for gst because we have to pass the increase on where they dont..I believe all business should be registered for GST thus making a fair [playing field for all...
    There are other ways of course to address the deficit like ...no cash....limit foreign aid...limit government spending waste etc...GST increase is easy because we do all the work in collecting it...
    Or get some balls and chase the companies that don't pay any, or little while shipping profits offshore! Nup, it's easier to take it out of john citizens pocket. Yes we live in the lucky country

  12. #12
    Member Redeye's Avatar
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    Default Re: 15% GST proposal, good, bad or is it a non issue?

    yep ^^

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  13. #13
    Senior Member steveo's Avatar
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    Default Re: 15% GST proposal, good, bad or is it a non issue?

    Quote Originally Posted by geoff View Post
    unfortunate the previous government like most labour Govts sent us nearly broke so to address the shortfall required we need to get in some coin....increasing the GST is one way and to offset pain some sections of the community are given rebates...being a gst registered business our cost don't change as we can claim the amount back...where it becomes unfair in our game is the ones that are not registered for gst because we have to pass the increase on where they dont..I believe all business should be registered for GST thus making a fair [playing field for all...
    There are other ways of course to address the deficit like ...no cash....limit foreign aid...limit government spending waste etc...GST increase is easy because we do all the work in collecting it...
    lawnies who don't register for GST pay the 10% out of their pocket on all their expenses. People who register for GST can claim back the %10 they also spend on their expenses. Both need to charge to cover that %10. Their is no advantage except less paperwork. If a lawny who doesn't register is charging less than one who is registered he is undercutting at own expense (working for nothing). In both cases everyone pays the GST on non business purchases. It's a bad tax and they are now normalising the idea to the masses before it goes in(and it will go in). Meanwhile multinationals and the rich are allowed to offshore their investments, negative gear in property and shares etc and get away with not paying their share while at the same time claiming govt benefits we all pay for. People used to protest about this sort of thing. Australia has too many investors around looking for easy money. We have been almost completely taken over by large corporations and foreign companies to the detriment of small business owners and the local population. GST has been in for all that time. It didn't fix anything.

  14. #14
    Senior Member steveo's Avatar
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    Default Re: 15% GST proposal, good, bad or is it a non issue?

    Quote Originally Posted by Arfa Brayne View Post
    +1 from me.

    Increased GST = Giving greater drive to the "underground economy".
    exactly. It was a furphy that GST was sold as getting rid of the cash economy.

  15. #15
    Senior Member geoff's Avatar
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    Default Re: 15% GST proposal, good, bad or is it a non issue?

    maybe but the ones that work on the cash economy still pay gst on purchases ,so although the cash is still going they are collecting revenue

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