Forbes Shire Council mayor Phyllis Miller says an increase to the GST would be the fairest way to reform tax.
Her comments come after NSW premier Mike Baird revealed recently he would like to see the federal government raise the GST from 10% to 15% at the same time as lowering personal income tax and company tax.
In his opinion this would raise revenue for state governments across the nation with funding voids in key areas such as education and health. Such changes to the tax system would likely not arrive until next year, but Cr Miller said a raise of the GST at the same time as a lowering in income tax would be the fairest reform for the people of Forbes Shire.
“GST is across the board- everyone pays it,” she said. “Income tax and company tax are all over the shot, depending on how good your accountant is to how much you pay.” “There would be some people affected with an increase in GST, especially pensioners and people on Centrelink payments, but at the same time I think it’s the fairest tax because everyone pays it. Everyone’s contributing.”
She added health and education were two of the most important areas in government, and sources of extra funding for these areas needed to be looked at. “I think education and health are two critical areas to having healthy and vibrant communities,” she said. “I don’t think there’s a lot of choice (about how to fund these areas). It’s (GST rise)
the fairest way.”