2014 Federal Budget
Is the silence in tonight’s Federal Budget on either the base or rate of GST a mechanism to push the State and Territory governments to the bargaining table on GST reform?
According to Tony Windle, National Head of Indirect Tax at Grant Thornton, the lack of announcement in the Federal Budget regarding any changes to either the base or the rate of the GST is not surprising at a high level, until the detail is reviewed.
Overall tax take from GST is projected to rise by 5.9% in 2015 and that will make its way to the States and Territories. However, in shaking up the Education and Health sectors, State and Territory Governments will potentially be worse off as the continued provision of essential services may create a funding shortfall.
Mr Windle said, “Further statements about putting GST on the tax reform agenda would have been welcome. Apart from some general comment about a “Federation White Paper”, it appears clear the appetite for such tax reform will be deferred until the Coalition seeks a second term mandate.”
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