Teal MP Sparks Discussion on GST Increase to Address Tax System

In a move that has ignited conversations across Australia, Allegra Spender, an independent Member of Parliament representing the affluent Sydney suburb of Wentworth, has called for a reevaluation of the Goods and Services Tax (GST). Known for her candid stance and representing a region that boasts some of the nation’s highest incomes, Spender has suggested that the current 10 percent GST rate might be too low.

Speaking to ABC Insiders host David Speers, Spender emphasized, “I believe that everything should be on the table: GST should be on the table.” As a first-term MP in a former Liberal stronghold, she contends that the nation relies too heavily on income taxes to support the elderly population, resulting in an unfair burden on the younger working-age demographic.

“Let’s have some of that big conversation,” Spender urged, recognizing the need for a comprehensive review of the tax system.

Spender’s suggestion arrives on the heels of a similar call from the Business Council of Australia, a group representing millionaire CEOs. However, the proposition of increasing the GST raises concerns about its impact on lower-income individuals. The GST rate has remained unchanged since its inception in 2000, with exceptions for items like fresh food and bread.

The Wentworth electorate, encompassing opulent neighborhoods like Vaucluse and Point Piper, epitomizes affluence. With five of the nation’s top ten postcodes for taxable incomes, the average taxable income in this region soars above $200,000.

Spender’s rationale behind advocating for a higher GST lies in her ambition to reduce income taxes, which currently constitute over half of the federal government’s revenue. “I see there’s a real challenge on our reliance on income tax – it’s at a historical high,” she remarked. She underlined the dwindling proportion of working-age individuals in the population, reinforcing the urgency of tax reform.

The recently published Treasury Intergenerational Report forecasted personal income tax receipts escalating from 50.5 percent of total tax receipts in 2022–23 to 58.4 percent by 2062–63. Spender acknowledged the significance of this trend, emphasizing the necessity of addressing the tax structure to accommodate demographic shifts.

In contrast to her electorate’s upscale status, Spender is also advocating for a review of the 50 percent capital gains tax discount on investment properties. She said, “Capital gains tax should be on the table,” noting the multifaceted implications of such considerations for both fairness and economic efficiency.

With an engaging hint of humor, Spender shared that her affluent constituents are genuinely concerned about their children’s prospects of affording homes in desirable parts of Sydney. “I had a lot of older Australians who say, ‘I just don’t know how my kids are ever going to be able to afford a home or live near me,'” she revealed.

While suggesting an array of tax reform ideas, Spender’s pragmatic approach resonates with both her constituency’s aspirations and the nation’s evolving financial landscape. With her unique perspective as a representative of one of Australia’s most prosperous areas, Spender continues to fuel discussions on reshaping the nation’s taxation framework.

L’article Teal Politician Urges Higher Gst to Cut Income Tax est apparu en premier sur Le Hérisson.