Treasurer Joe Hockey under attack after stray comments cause big headaches

A FEW stray comments on last night’s Q&A had caused big headaches for the Government, and Treasurer Joe Hockey’s performance is back under attack.

Question Time

TREASURER Joe Hockey’s performance is again under attack after stray comments he made on television sees the Government defending itself over how the GST is levied and superannuation is taxed.

The Government will now go to the premiers with a costed plan to scrap the so-called Tampon Tax after a day of confusion on the issue sparked by Mr Hockey’s remarks.

And Prime Minister Tony Abbott has had to again deny his Government would alter concessional tax rates on superannuation accounts.

Late today, Essential Media reported that despite a relatively well-received Budget, Mr Hockey’s performance rating was low.

It found just 34 per cent of voters approved of how he was doing his job, and 44 per cent disapproved.

Mr Hockey’s problems began on ABCTV’s Q&A on Monday night when he agreed the goods and services tax on women’s sanitary products should be dropped because they were health necessities.

This was despite the Government vowing it would make no changes to the GST, whose revenue goes to the states.

Today, Prime Minister Tony Abbott had to dodge being asked to back his Treasurer and argued it was all a matter for the state governments.

“My preference is that the states and territories should make up their minds whether they want any changes to the GST and if they do, then they are welcome to come to us,” Mr Abbott told reporters.

But now it seems the Federal Government is going to the states.

Tonight, Mr Hockey said he would ask Treasury to cost removal of the GST on women’s sanitary items.

“When I receive those costings, I will write to the states for them to consider the issue ahead of our next meeting in July,” Mr Hockey said in a statement.

Opposition Leader Bill Shorten had his own calculations. He told Parliament the tax was worth about $25 million a year. Meanwhile, the states would receive an extra $350 million over the coming four years from the GST being applied to movies and music imported online, known as the Netflix Tax.

Women have objected to the indirect tax being levied on their health products but the issue was dormant until Mr Hockey revived it with his comments on television.

He also put the Prime Minister in a difficult position by saying superannuation taxation might be changed at some stage.

“Well, what we said going into the election was that there would be no adverse changes to superannuation in this term of Parliament and that’s a commitment that we’ve kept and certainly intend to keep,” Mr Abbott said.

“I’ve said, and let me repeat it now, that we have no plans to change the superannuation system – no plans to change the superannuation system.”