Property sector welcomes GST discussion

Property sector welcomes GST discussionThe peak body for Australia’s $680 billion property industry has today welcomed Premier Jay Weatherill’s open-minded position on changes to the GST. The Property Council of Australia said the Premier’s comments come just days after it released polling highlighting widespread public acceptance of future GST changes. “Following comments made by NSW Premier Mike Baird, Premier Jay Weatherill has indicated that he wants changes to the GST discussed at this week’s meeting of our nation’s leaders,” said SA Executive Director Daniel Gannon. Mr Weatherill told 891 ABC radio that “we have to have the discussion (about increasing the GST to 15 per cent) We have to be open to all kinds of discussions.” “In order to completely abolish stamp duty, broader tax reform is required – and that means changes to the GST,” said Mr Gannon. “Abolishing stamp duty and replacing it with a more efficient revenue base would address housing affordability, boost South Australia’s economy, and bolster our State Budget.” A report from Newgate Research Community attitudes towards tax reform, commissioned by the Property Council, found that nine out of ten Australians surveyed supported tax reform which made the system simpler and fairer.”Broadening or increasing the rate of GST has long been considered political poison, but that no longer reflects the attitude of South Australians with 92 per cent believing the system needs reforming,” said Mr Gannon. “South Australians clearly understand the need for tax reform and as the research makes clear they want a tax system that is fairer and simpler with 75 per cent believing it’s extremely or very important to make the system fairer. “Changes to the GST need to be taken out of the too-hard basket with 66 per cent believing GST is fair and 72 per cent believing it will rise in the next decade. “Far from being political poison, South Australians view the GST as our fairest tax. Our research shows that a reformed GST would pass the fairness test set by our political leaders. “Treasury’s own modeling shows that Australia’s economic welfare is reduced by 73 cents for every dollar of stamp duty raised, which is per cent worse than company tax and three and a half times worse than income tax or the GST. “Obviously the abolition of stamp duty needs to occur in conjunction with a broader series of tax changes so that the State Government has the revenue it needs to deliver services, and it is essential that GST reform is part of this discussion.” “Change to the GST is a practical solution to enable stamp duties to be retired to boost our state’s economy in a way that is fair.”