GST changes not political poison New poll

Home Media Releases GST changes not political poison New poll

GST changes not political poison: New pollNew research points to a significant shift in community attitudes toward tax reform in Australia with GST considered the fairest of all current taxes.In stark contrast, stamp duty on property purchases ranks as the least fair and most punitive, with a majority of Australians wanting it abolished and strong support for increasing GST to retire stamp duty.A comprehensive report from Newgate Research Community attitudes towards tax reform, commissioned by the Property Council of Australia, finds that nine out of ten Australians surveyed supported tax reform which made the system simpler and fairer.Nearly three quarters (72%) of Australians believed it was inevitable that GST will rise over the next decade, while only two per cent believed it would definitely not rise.Most believed the GST is a fair tax because it was one that could not be dodged.Stamp duty on the other hand is considered the most unfair tax of all with most Australians agreeing that it was now a major barrier to buying a home. Over two-thirds (68%) of Australians have been personally affected by stamp duty and it has made it harder for around half (54%) to afford a home.The research also reveals that housing affordability ranked as a key concern with 86 per cent of those surveyed claiming they were concerned about housing affordability to some degree with nearly two thirds (63%) either “extremely concerned” or “very concerned” about it and even more (70%) believe it is “extremely” or “very important” for the government to take action on this issue.Three-quarters of Australians also agree that stamp duty is driving up home prices and making it unaffordable for young people to own their own home. Over two thirds of the community (70%) support the idea of abolishing stamp duty.Australians believe overwhelmingly (71%) that the level of tax on people’s homes is too high. Reducing the level of tax on people’s homes is considered a higher priority than reducing the rate of personal income tax.Over two thirds (70%) of people supported the abolition of stamp duty, with the concept of reforming the GST to pay for stamp duty abolition also receiving strong support.Almost half (47%) of Australians support abolishing stamp duty in exchange for removing current GST exemptions: a further 21% are undecided and only 32% oppose this reform proposal. A similar proportion (46%) support abolishing stamp duty in exchange for keeping GST exemptions in place and increasing the GST to 12.5%: 22% are undecided on this proposal and only 32% oppose it. Property Council Chief Executive Ken Morrison said the research showed Australians supported fair reforms to the tax system.”Broadening or increasing the rate of GST has long been considered political poison, but that no longer reflects the attitude of the community,” Mr Morrison said.”Australians clearly understand the need for tax reform and as the research makes clear they want a tax system that is fairer and simpler.”Changes to the GST need to be taken out of the too-hard basket.”Our research shows that Australians would support an increase in the rate of GST in return for doing away with other unfair, punitive taxes like stamp duty.”Governments know stamp duty distorts the economy, hurts housing affordability and is a rollercoaster source of revenue.”National tax reform needs to replace our most distortionary taxes with more efficient revenue sources.”The research is based on the answers of 1,957 respondents surveyed nationwide in May and June 2015.Media contact: Matt Cross | M 0402 155 372 E [email protected]