Clive Palmer says business must pay tax share, not families
BUSINESSES should be required to pay GST on a percentage of their inputs rather than Australian families being burdened with a 50% increase in the rate they pay, says Fairfax MP Clive Palmer.
He said the Federal Government collected around $260 billion annually in GST of which $245 billion was refunded to business.
"100% of GST paid by business is refunded,'' Mr Palmer said.
"If only 97% of what business paid was refunded the Government would raise more funds than increasing the GST to 15% under the current system.
"Why should Australian families carry the burden of an increased GST when business pays nothing?
"Making consumers pay more will mean that there is less demand and less jobs. Why do families have to pay more just so business can pay less corporate tax when they pay no GST at all."
The proposal came as the Federal Government began backing away from a GST increase as an element of any tax reform.
Prime Minister Malcolm Turnbull told media on Monday that the first thing the government had to satisfy itself with was that the proposed policy delivered the wanted outcomes which included stronger economic growth while at the same time being fair and not increasing the overall tax take.
Treasurer Scott Morrison said the government had never been interested in increasing the GST just to put money in government coffers.
He reiterated his position that Australia had a spending problem rather than it having a revenue problem.