Looks like a return of death taxes and a rise in the GST rate are heading Australia’s way. Why would that be so? Because Treasurer Zippy is denying both. This is the same Labor government, after all, which promised 100 times in 2022 to cut household electricity bills. We all know how that’s gone. About as well as previous Labor PM Julia Gillard’s unequivocal vow that “there will be no carbon tax under a government I lead”.
Jim Chalmers has taken taxes on death and the family home off the reform agenda at August’s productivity roundtable, while playing down any suggestions that the meeting will be a repeat of the union-dominated Jobs and Skills Summit of 2022.
Except that he’s already sneaking in a death-tax-by-proxy, with his tax on unrealised capital gains from superannuation. As I’ve previously reported, the new tax will hit deceased estates – where superannuation is more and more replacing traditional bequests.
All because Labor is spending the country into oblivion on useless scams like the NDIS while crippling economic activity with its demented ‘Net Zero’ policies. So their only recourse is taxes, taxes and more taxes. If we get too cold, they’re literally taxing the heat.
And they’re only just getting started.
Jim Chalmers has declared tax reform is needed to fund growing spending on defence and the care economy while warning that traditional revenue streams will be threatened by the net-zero transition, as he left the door open to raising the GST, increasing levies on resources and charging electric car drivers for using roads […]
In a speech at the National Press Club on Wednesday, Dr Chalmers offered a decisive break from Labor’s incremental first term by declaring he was “prepared to do my bit” in delivering historic and generational reform of the scale achieved in the Hawke, Keating and Howard eras.
Chalmers is ‘doing his bit’ about as much as a conscientious objector was helping the war effort. What he really means is that he’s going to tax everything he can.
At least he’s kinda-sorta admitting that Labor have totally screwed the economy.
Breaking with his pre-election claims that the budget was in good shape, Dr Chalmers used the speech to outline the structural pressures on the nation’s finances.
This included government spending outstripping the tax intake, growing cost pressures through the care economy and defence, an ageing population, and diminishing revenues from coal and gas exports as the world’s energy system transitions.
Here comes a rise in GST.
While Labor ruled out changes to the GST ahead of the election, Dr Chalmers said on Wednesday he would keep an open mind on proposals in this area as part of his aim to “reset and renew the national reform conversation”.
“I suspect the states will have a view about the GST,” Dr Chalmers said. “It’s not a view that I’ve been attracted to historically, but I’m going to try not to get in the process of shooting ideas between now and the roundtable.”
When questioned if these “bold” changes included moving on the GST rate, Mr Chalmers declared he couldn’t “rule in or out” any changes, although he said he was personally against the idea.
Ow, ow, they’re twisting his arm… Oh, fine, then, he’ll raise the GST rate.
Chalmers is even talking up reviving the mining super tax that buried Kevin Rudd’s first term as PM.
Dr Chalmers vowed to consider proposals to raise more revenue through resources exports, although he declared nothing in this area had been considered by the government beyond the already legislated changes to the petroleum resource rent tax.
Cos he’s the taxman and we’re working for no one but him.
