Prime Minister Tony Abbott says there will be no changes to the GST in his first term
TONY Abbott insists the GST won’t change in his government’s first term, despite one of his MPs pushing for it to apply to fresh food, health and education.
TONY ABBOTT has delivered a strong message to colleagues pushing for a change in the GST: it won’t be happening anytime soon.
Yesterday Liberal MP Dan Tehan called for the Goods and Services Tax to be broadened this year to include fresh food, health and education.
EARLIER: Liberal MP Dan Tehan calls for the GST to be broadened
But speaking in the Middle East, the Prime Minister insisted there “will be no changes to the GST in the first term of the Coalition Government” and there are currently “no plans” to tinker with it.
When asked about Mr Tehan’s comments, Mr Abbott said he didn’t mind people “debating the GST”.
“I certainly don’t mind members of Parliament discussing the GST, but the GST simply can’t change unless all of the states and territories agree and there is a political consensus in the Parliament.
“So, I know that lots of people hyperventilate whenever the GST is mentioned, but it’s important to remind people that it simply cannot change unless all of the states and territories, including the Labor states and territories, agree and there is a consensus in the Parliament and it won’t change in this term of Parliament.”
Mr Tehan described the GST as “unfinished business” and broadening the tax as the “missing link”, writing in the Financial Review yesterday.
“It would deliver up to $21.6 billion in extra revenue each year and enable further serious reductions in direct taxes.
“If we can’t handle the task of making our tax system work now, we will hand a bound and broken Australia to our children.”
Acting Opposition Leader Tony Burke said Mr Abbott was paving the way to make every checkout in the nation ... “a tax collector”.
“They have let their backbench off the leash here because they have a clear plan to change the GST.
“They want to introduce it to food.
“They want to make sure that every time people go to buy the most basic grocery items, Tony Abbott’s in there taking the money from them.
“No one should think what’s happening with the GST debate right now is just the backbench talking,” he said, claiming it was coming from liberal leadership.