Read The Times Australia

Daily Bulletin

Hockey's expensive night out

  • Written by: The Conversation
imageTreasurer Joe Hockey made policy on the run, appearing on ABC television's Q&A.AAP/Lukas Coch

Hockey has always been wary of going on Q&A. He was right.

The Treasurer made policy on the run on the program when he agreed that GST shouldn’t be applied to women’s sanitary products and promised to take the issue up with the states.

Hockey had been confronted by a question from university student Subeta Vimalarajah about her petition to remove the tax that had more than 86,000 signatures. Should the GST be removed? “It probably should, yes. The answer is yes,” he said.

Praising the questioner - “good on you for getting the petition together” - Hockey said he needed the agreement of the states to make a change, and “I will raise it with the states at the next meeting of the treasurers in July”.

But Tony Abbott was less than keen on the exemption, telling his Tuesday news conference that the government had no plan for this. It was a matter for the states to decide whether they wanted any changes to the GST and if they did, to come to the Commonwealth, he said.

Hockey is pressing on, saying late on Tuesday he’d asked Treasury for a costing and then would write to the states for them to consider the issue ahead of the July meeting.

Labor, which in the 2001 election proposed rolling back the GST on these products, on Tuesday said it would support an exemption. Bill Shorten suggested it could be a trade off for the government’s planned extension of the GST to Netflix.

Hockey’s agreement that the exemption should be made was odd, to say the least. This was a fiercely debated issue at the start. It’s true that there were inconsistencies in the exemptions, which include for instance condoms. But does the government really want to revisit individual items, when exempting one could open the way for argument over others?

Removing sanitary products would cost some $30 million annually, according to Chris Richardson of Deloitte Access Economics.

And, as Richardson says, it is taking the debate off in the opposite direction to the one in which it should be going.

“Australia has too little reliance on indirect tax and too much reliance on direct tax,” Richardson says.

A year ago Hockey was, not too subtly, trying to get the states to push for the GST to be increased or broadened.

Now the pressure is on them to exclude something, or wear the political odium for not doing so.

The three Labor states – Victoria, Queensland and South Australia – have quickly said they would support the exemption. The Labor government in the ACT is also on board.

Victorian Treasurer Tim Pallas said: “We’ve supported the removal of GST on sanitary products for a long time, so we welcome the federal treasurer’s statements … We look forward to Mr Hockey now putting his proposal to the states and territories, and allowing them the opportunity to back it in.”

South Australian Treasurer Tom Koutsantonis said sanitary products “should be exempt”.

The NSW Liberal government is much more cautious. NSW Treasurer Gladys Berejiklian said the states would have “an opportunity to discuss the GST and tax reform more broadly in July”.

The Tasmanian Treasurer, Peter Gutwein said he was “happy to have that discussion with my state and federal counter-parts”.

West Australian Treasurer Mike Nahan said that “any change to, or removal of, exemptions from the GST process should be part of broader GST reform.“Western Australia considers broader reform of the GST distribution process, a process that currently results in Western Australia receiving an unacceptably low share of the national GST pool, to be our main priority.”

The way things are shaping up, with Labor taking a unified position at federal and state level, Hockey has managed to have the Liberal states cornered on the issue – one that resonates with many women - and the federal government as well.

Authors: The Conversation

Read more http://theconversation.com/hockeys-expensive-night-out-42358

Business News

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

How to Vet and Hire the Right Property Expert in the Australian Market

Navigating the Australian real estate market has become a highly strategic exercise. Recent nation...

Moving From Australia to Wellington: The Practical Settling-In Checklist

Wellington has a lot going for it. It's compact, walkable and full of cafes, with a harbour that r...

How to Match Replacement Roof Tiles on an Older Home

Renovating or repairing an existing roof comes with quite a few headaches, and matching the old roof...

Sydney Academy Partnership Targets Talent Development for Travel and Hospitality

VFS Global Academy’s Australian expansion will focus on practical skills and career development thro...

How Strategic Corporate Gifting Boosts Client Retention and Team Morale

As the calendar pushes towards the end of the year, business leaders across Australia begin evalua...

The Importance of Reliable Plumbing Services During Home Renovations

A freshly renovated bathroom can make an ordinary Monday morning feel a little more inviting. The ne...

Backyard Living Options for Campbelltown Homes: What Works Best?

You know that feeling at the end of a long, busy week when all you want is a calm spot outdoors, whe...

Smart Wardrobe Storage Ideas for Small Sydney Apartments and Bedrooms

A well-designed wardrobe is one of the most useful things a home can have. It's meant to keep clothe...

Colorbond Fencing in Australia: Costs, Colours, Rules and What Actually Lasts

Drive through almost any Australian suburb built in the last thirty years and you are looking at the...