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Latest news

CCIQ calls for more clarity around new GST distribution

Tuesday, July 10, 2018

The Chamber of Commerce and Industry Queensland (CCIQ) has welcomed the announcement of the Federal Government’s proposed GST arrangement that no state will be worse off but calls on the government to reveal where the extra money will come from.

Following a Productivity Commission report last month which suggested a cumulative cut to Queensland’s GST funding by as much as $11.7 billion by 2026/27, the announcement by Treasurer Scott Morrison provides some temporary relief until the full picture is revealed.

CCIQ Head of Media and Industry, Dan Petrie said that the GST is a policy area that is critically important to all states and reassessing the current formula is a logical first step.

“While a positive step, we must bear in mind that the new GST distribution formula is not tax reform and should not be the end game.

“For years, we’ve been advocating for broader structural reform of the federal tax system, which would leave room for State and Territory governments to remove inefficient taxes such as payroll tax and stamp duties.

“The GST as a consumption tax is not a sacred cow,” Mr Petrie said.

CCIQ remains vigilant on reminding governments at both state and federal levels that it is largely the business sector that collects the tax which pays for the schools, hospitals and government functions the states administer on behalf of the tax payer.

“We are eagerly awaiting the finer details of the new carve up, specifically as to where the extra money will come from.

“If the Federal Government is proposing the money come from its surplus for example, we would obviously take issue with this.

Thursday 5 July, 2018 | By: Daniel Petrie

Source: www.cciq.com.au
 

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