The GST will not be raised

Good!

DEPUTY Liberal leader Julie Bishop has ruled out accepting Treasury advice to expand the GST or re-index the fuel excise, as former treasurer Chris Bowen claimed the department “never” advised him to increase the consumption tax.

Treasury secretary Martin Parkinson last night warned that Australia must be prepared for a recession in the next decade and cannot rely on rising income taxes to restore budget health.

Dr Parkinson, whose term as Treasury secretary has been extended by Tony Abbott for six months to the end of the year, also argued for increases in the GST to ease the burden on personal and company income taxes.

So the question remains, why is Martin Parkinson being kept around till November? Is there really no one the Coalition can think of to put in his place? It is a worry that Treasury, as in all departments, promote clones of the people at the top so where are they going to find someone who has a feel for the private sector. Still, Peter Costello was Treasurer as recently as 2007 so there must be some plant of his that has grown into the job and can be put into this slot.

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16 Responses to The GST will not be raised

  1. Milton Von Smith

    I wonder if Treasury’s estimates of additional revenues from extending the GST to health and education take into account possible second round increases in government spending, due to the substitution from private health and education back into the public sector equivalents, once prices for the former rise.

    If the revenue estimates are like Treasury’s Tax Expenditure Statement estimates for superannuation concessional tax rates, I doubt it.

    And on a related issue: if education and health have such large positive externalities as we’re always bombarded with, how on earth can it be efficient to tax them more?

  2. Ant

    What’s Swanny up to these days?

  3. Squirrel

    “So the question remains, why is Martin Parkinson being kept around till November?” – well, I guess he knows where many of the bodies are buried, and so the Government may prefer to let Dr P do some of the dirty work of the first Budget, and ease-in his replacement for subsequent efforts.

    I found it entertaining that one of the reasons given for widening the coverage of the GST and indexing fuel excise was to avoid the impact of rising (presumably due to bracket creep) income taxes on lower and middle income earners – who, of course, would be entirely unaffected by a more comprehensive GST and a high fuel excise…….

  4. Andrew

    I think Squirrel is right – knowing where the bodies are buried makes him marginally less useless than the rest of the potential replacements.

    Gotta give these Gillard hangers-on their credit. They really are shameless. To follow his fellow uber-squandermonkey Henry into announcing a century of deficits plus massive bracket creep plus massive explicit debt hikes takes some doing with a straight face when you’re the offender.

    I look forward to a joint statement from Thomson, Williamson, any other young and naive signatories and the ACTU saying “Isn’t it about time Abbott666 fixed the huge amount of union corruption.”

  5. jupes

    Treasury secretary Martin Parkinson formerly headed the Department of Climate Change.

    He is obviously a moron so why would the Abbott government listen to a single word the idiot says?

  6. gary

    Why is he still there today? The cemetery is full of indispensable men. His speech on raising the GST was a speech for a politician not a bureaucrat. He should be allowed to go and follow his ambitions to be a politician.

  7. Andrew

    OTOH, by keeping him on to blag on with idiocy like “More GST! The Budget is ruined!” Abbott666 is shrewdly doing 2 things:
    1) Showing the GetUp crowd exactly WHY this clown has become the first / second in his position to be moved along. (I include the Wombatbotherer in the GetUp fraternity.)
    2) Reminding the public what Rudd-Gillard-Rudd-Goose-Bowen-Senior Labor Figures secretly had in store for them. Even the average voter is not that stupid – when the bloke who set up 3 years of Labor budgets says “your GST is going up to pay for this” and then gets fired by Abbott666 bits of it do sink in.

  8. JohnA

    If he’s due to go in Nov, it may be “worth his while” to hang around rather than do the polite thing and retire early. Contractually there may be a big fat golden parachute, which the government would be loath to deploy (politically speaking).

    Squirrel gets a +1 for his “yeah, right” explanation of the impact of a hike in GST.

    But as I posted in an earlier thread on a similar topic, lifting the GST has no effect on the Federal Budget (since the revenue goes straight to the States) unless grants to the States are cut. Good luck with that!

  9. Rabz

    This continual talk of tax increases really is starting to give me the absolute frigging proverbials.

    Just cut spending, you idiots. How difficult is this to comprehend?

    Every single instance of labor/greenfilth squandermonkey idiocy that requires a line item in the budget must be ruthlessly hacked.

    Oh, and various hacks must also be sacked. That the Government has kept that insane bumbling mediocrity Parkinson on for even longer, instead of insisting on his resignation the Monday after the election, is simply incomprehensible.

    And no more talk about fiddling with negative gearing, thanks. That inveterate imbecile Keating scrapped it and was then was forced to reinstate it, shortly afterwards, as the negative consequences became clear.

    Remember, the definition of insanity is repeating the same action and expecting a different outcome.

  10. adrian

    Parkinson is waging a campaign against Coalition by giving the ALP ammunition over the GST. simple as that. expect to hear more of him after he retires pushing the ALP line.

  11. Fleeced

    Still, Peter Costello was Treasurer as recently as 2007 so there must be some plant of his that has grown into the job and can be put into this slot.

    Oh, I wish they would… Didn’t Costello appoint Henry?

  12. Sir Fred Lenin

    Reduce his duties to toilet cleaner in the Alice Springs branch untill his contract expires,set him,swan,henry. The kruddster ,the old leso anbulance chaserampnd the Liars pardee up as the patsies who cop the flak for the disgracefull waste of Taxpayers money,change PS and pollie pension and super laws retrospectively.why should they get a cent for stuffing everything they touched.Scrap every quango and. Law these idiots ever passed, green,racist,interfering and stultifying”law” since whittlman started stuffing the People?

  13. Menai Pete

    Look at the timing and purpose of Martin Parkinson’s GST speech. The speech was given during the last days before the WA Senate by-election. It created a controversy for the Coalition and gave Labor ammunition during the election campaign.
    The question has to be asked – Was the speech deliberately manufactured to influence the vote tomorrow?

  14. Andrew

    But how did it hurt the LNP? “Liebor has made such a catastrophe that the Treasury secretary thinks taxes must rise enormously. This is precisely why WA must avoid giving them Sen8 control. Why the people should not elect the SLF in 3 years. Why R, G and R (again) should be horsewhipped on the grass outside P House.”

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