Australia’s Federal Government has announced it will not be adding to the GST and GSW as part of a series of reforms aimed at increasing the competitiveness of the mining industry.
The announcement came just days after the Federal Treasurer, Scott Morrison, said he had told the industry it was time to “get over the hump” and move on.
Mr Morrison said the Government had no plans to change the way the Commonwealth distributes its GST, but would instead look at ways to encourage the introduction of other taxes, including property taxes.
“We are not in a position to change what we do.
We are not going to be making any changes to the GST or the GSE,” he said.”
The Australian Government has always made the case for this type of tax system as one of the best ways of raising revenue.”
And we are going to continue to do so.
“Mr Morrison added that while it would be a mistake to ignore the concerns of some industries about the GST, he was not going against the advice of the industry.”
As the Prime Minister said, we want to work with the industry and we want them to be successful,” he told reporters in Canberra.”
But we have to make sure we are not making any decisions that are not supported by evidence.”GST and the GSTGST is a federal levy on the value of goods and services purchased by households and businesses, including those imported into Australia.
The GST is calculated by taking a basket of goods, which includes most commodities, and dividing it by the total price of goods.
The rate is fixed at 25 per cent.
The GSW is a tax imposed on the wholesale price of imported goods.
It is calculated differently to the wholesale rate and does not take into account the cost of processing and packaging.
The Government introduced a new, more complex GST system in January, including the introduction a new rate of 20 per cent, with the introduction the GST on the total value of the goods and the first 5 per cent on the supply chain.
The new system means the GST is now payable on all items purchased at a retail outlet, including most products purchased online.
There are also new restrictions on the use of mobile phones and tablets.
The Federal Government’s latest budget, released on Monday, includes a proposal to increase the GST to 50 per cent from 40 per cent and to replace the GST with a new system that would give the GST a higher value and would also include the GST and the state’s share of the GST.”
I want to be very clear: I do not support a GST increase.
I think it is an unnecessary tax that does not benefit the economy,” Treasurer Scott Morrison said.