Katy Gallagher does the right thing

Barcham 21 May 2013 4

Katy Gallagher is supporting a Coalition moves to review the GST as part of a wider tax assessment, despite not actually being a part of the Coalition reports ABC News.

This is brilliant. This is fantastic. I make fun of politicians a lot on this site, but here is one doing the right thing.

I’m not saying the GST needs another look, I’m not saying it doesn’t either. I have no idea, it’s way out of my field of expertise.

What is fantastic is this is one of those rare moments when a politician remembers that they are a public servant and is deciding to act in what they believe is the public’s best interests instead of supporting their party like politics is some kind of bizarre and super lame team sport.

Well done Katy Gallagher.

If elected in September, the Coalition will commission a white paper on tax which could include the GST.

But federal Labor opposes raising the tax rate and has accused the Opposition of wanting to lift it.

Ms Gallagher says the tax needs another look.

“I understand it’s difficult to have a conversation about it particularly in the lead-up to an election but any rational look at this, and look at the Australian taxation system, would at least have the discussion around the GST not necessarily whether you increase it or change it but have it as part of that discussion,” she said.

But Ms Gallagher concedes she is out of step with federal Labor.

“I’m not trying to undermine anything and you know I’ll leave those matters for the Federal Government and the Federal Opposition,” she said.

“I’m coming from it from the point of the Chief Minister of the ACT and I think it’s fair and reasonable that at times we will have different opinions to that of a federal government.”

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4 Responses to Katy Gallagher does the right thing
HiddenDragon HiddenDragon 10:11 pm 21 May 13

Well, Barcham, we may not see eye to eye on the priority which should be given to funding public art (particularly large floating things), but we do on this. It was very late at night, or perhaps early a.m., when I read what KG had said about the GST review, and I first thought I was dreaming, or so tired that I had completely misunderstood the report.

Cynics might, for instance, say that this is an indication of just how bad the ACT’s budget position is (in truth) looking for coming years – even if that, or something along those lines, is the reason for this outbreak of honesty and common sense, KG still deserves credit for what she has said.

If we do, eventually, get an increase in the rate of the GST and/or the things it covers, I hope that any compensation which is given equitably recognises that everyone pays the GST – not just people with dependent children and people on middle and upper incomes. As I recall it, working people on lower incomes, particularly if they did not have dependent children, were probably the least favourably treated when the GST was introduced by the Howard government. My fear is that changes to the GST under an Abbott government would probably see history repeated, in this respect.

Shame that Hockey has so strenuously denied looking at negative gearing – if all the fine words we will doubtless hear about economic efficiency in the lead-up to the tax review were genuinely meant, policies which could gently reduce our national obsession with real estate would be seriously considered. Phasing out negative gearing gradually – over five or ten years – should deal with all the well-worn arguments about dislocation and unfairness. Aside from the electoral risks, I assume negative gearing is quite popular with politicians, so that may also have something to do with the stated position of both major parties.

arescarti42 arescarti42 12:29 pm 21 May 13

Yay, nice work Katy. We should be doing a tax review.

And look out all you negatively geared property investors, Hockey has confirmed that a review of the negative gearing loophole will be part of the tax review.

Dilandach Dilandach 11:53 am 21 May 13

That and accepting the inevitability of a federal coalition government.

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