BREAKING NEWS Why Anthony Albanese could consider big changes to the GST
Anthony Albanese 's government could consider changes to the GST even though the Labor Party has long been opposed to increasing or tinkering with the consumption tax.
Items like fresh fruit and vegetables, bread, cooking oil, meat and unflavoured milk were exempted from the 10 per cent GST under a political deal reached in 1999 between former Liberal prime minister John Howard's government and the Australian Democrats in the Senate.
Labor had lost the 1998 election campaigning against the Coalition's proposed GST and voted against it in Parliament.
But Treasurer Jim Chalmers has revealed he would be open-minded about expanding the base of the GST to raise more government revenue, ahead of a productivity-focused roundtable in August.
This would mark the biggest change to the Goods and Services Tax since it debuted in July 2000, shortly before the Sydney Olympics.
'What I'm going to try and do - because I know the states will have a view on it, I'm going to try not to dismiss every idea that I know that people will bring to the roundtable,' he told the National Press Club in Canberra on Wednesday.
'I suspect the states will have a view about the GST - it's not a view that I've been attracted to historically but I'm going to try not to get in the process of shooting ideas between now and the roundtable.
'One of the ways that I am going to be inclusive and respectful in the lead-up to this roundtable is I suspect people will raise that question.'
Chalmers declined to confirm that he had ruled out any changes to the GST, even though he's personally opposed to increasing or expanding it.
'I haven't changed my view on it. And again, it's a nice little, cheeky attempt to get a rule in, rule out in.'
It's been a decade since state premiers called for an increase in the GST.
That's when South Australian Labor leader Jay Weatherill and his New South Wales Liberal counterpart Mike Baird called for an increase in the rate.
Funds raised from the GST are distributed to the states and territories via the Commonwealth Grants Commission.
Former Liberal prime minister Tony Abbott backed their call in July 2015, but two months later, Malcolm Turnbull rolled him as leader.
New Zealand in 2010 increased the GST to 15 per cent, up from 12.5 per cent.
Australia's 10 per cent GST is among the lowest in the world with only the United Arab Emirates (five per cent) and Thailand (seven per cent), Taiwan (five per cent), Oman (five per cent) and Jersey in the Channel Islands (five per cent) having lower consumption tax rates.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
43 minutes ago
- Reuters
Oklahoma strives to become American hub for critical minerals processing
LAWTON, Oklahoma, June 18 (Reuters) - Nestled beneath Oklahoma's Wichita Mountains sits a two-story warehouse containing the only machine in the United States capable of refining nickel, a crucial energy transition metal now dominated by China. The facility, owned by startup Westwin Elements, aims to help Oklahoma become the epicenter for U.S. critical minerals processing, a sector the country largely abandoned decades ago. The state will have to overcome several obstacles to get there, including a lack of major critical mineral deposits, a weak education system and its location at the center of the United States - far from international shipping lanes. Yet Oklahoma's push into minerals processing marks an unexpected twist in the country's efforts to wean itself off Chinese rivals who have blocked exports. President Donald Trump has said he wants to boost U.S. production of minerals used across the economy. In Oklahoma, the country's only nickel refinery, its largest lithium refinery, two lithium-ion battery recycling plants, a rare earths magnet facility, and several electronic waste collection facilities are under construction or in operation - more than in any other state. They join a Umicore ( opens new tab site that produces germanium crystals for solar panels. An aluminum smelter - the country's first since 1980 - is set to break ground next year at a site bordering an Arkansas River tributary. "I've strategically made a conscious effort to go after some of these new industries that I think are going to be critical," Governor Kevin Stitt, a Republican, told Reuters. "There's money flying into critical minerals from the investment side, so it might as well be located in Oklahoma." Investors and corporate executives say the state's location, lack of mineral deposits, and other detracting factors are outweighed by a string of positives: Oklahoma has railways and highways bisecting the state en route to the three U.S. coasts, a workforce with deep energy experience, state rebates and other financial incentives, a large inland port with access to the Mississippi River watershed, and accommodating regulators. Officials boast on social media that Oklahoma is a "one phone call state," a description meant to evoke what they see as a streamlined regulatory process. Australia-based MLB Industrial, a startup that supplies lithium-ion batteries to the locomotive industry, expanded its business to Oklahoma earlier this year for that very reason. "Other states were looking for a large, established company to invest, rather than a company with a growth profile," said Nathan Leech, MLB's CEO, who moved his family to Oklahoma. "We intend to grow in Oklahoma." A nickel refinery, in particular, has been sought by Washington for years but Chinese market dumping had scared away would-be entrants, said a source familiar with the Trump administration's minerals policy. KaLeigh Long founded Westwin and named it after her desire for the U.S. to shake off Chinese minerals dependence - as she puts it, "The West will win." The firm has built a demonstration facility 85 miles (137 km) south of the state capital that it says can refine 200 metric tons of nickel annually and will expand to produce 34,000 metric tons per year by 2030. If successful, the Westwin facility would refine 10% of America's annual nickel needs, demand projections from Benchmark Mineral Intelligence show, drawing on rock taken from Turkish and Indonesian mines, as well as recycled U.S. batteries. Even as Oklahoma promises state tax rebates and other incentives, Westwin is lobbying Washington not to eliminate a federal production tax credit heavily opposed by Republicans along with other green energy subsidies enacted by former President Joe Biden, as Reuters reported earlier this month. Westwin is in negotiations with the Pentagon for a nickel supply deal that would keep metal inside the United States to make batteries for military drones and other equipment, according to a source familiar with the deliberations. Roughly 220 miles (354 km) northeast, a lithium refinery under construction from Stardust Power (SDST.O), opens new tab aims to produce 50,000 metric tons of the battery metal per year, about a fifth of what the U.S. is expected to need by 2030. Japan's Sumitomo (8053.T), opens new tab signed a preliminary agreement in February to buy up to half of the facility's output. Stardust aims for the plant to filter lithium from brines - something that has yet to happen at commercial scale - and will have roughly the same capacity as Tesla's (TSLA.O), opens new tab refinery under construction in Texas. It will be powered in part by renewable energy; nearly half of the state's electricity is generated by wind turbines. "That was a huge draw," said Roshan Pujari, Stardust's CEO. The company is pushing forward even after rival Albemarle (ALB.N), opens new tab paused plans to build a large U.S. refinery, citing weak lithium prices. "During these down cycles is the best time to be developing, because why do we want prices to be high when we have nothing to sell?" Pujari said. USA Rare Earth (USAR.O), opens new tab, which went public earlier this year, chose Oklahoma over Texas for its rare earths magnet facility given what it felt was the personalized support from Stitt and other officials, said CEO Josh Ballard. Magnets made from rare earths turn electricity into motion for EVs; the U.S. stopped making them in the 1990s. Ballard says the facility is slated to open early next year and initially produce 1,200 metric tons annually, enough magnets to build more than 400,000 EVs. That supply is already highly sought after in the United States since China placed export restrictions on rare earths in April. Ballard said he has been fielding "a lot of phone calls" since April from prospective customers. The company on Tuesday signed a preliminary supply agreement with Moog (MOGa.N), opens new tab for magnets used in AI data centers. "We can do this quickly. It's just a matter of how do we do it, and can the government help be a catalyst?" said Ballard. The company could get a boost from legislation introduced earlier this month by three U.S. senators - including Oklahoma's Markwayne Mullin - that would provide a tax credit for roughly 30% of the cost to manufacture a magnet made from rare earths. Elsewhere, two Oklahoma battery processing facilities - from Green Li-ion and Blue Whale Materials - will break down lithium-ion batteries into copper and other building blocks for new batteries. Natural Evolution, in Tulsa, is spearheading a push to expand electronic waste recycling. Green Li-ion, which has a recycling facility in Atoka - Country music star Reba McEntire's hometown - has held talks with Glencore (GLEN.L), opens new tab as well as Westwin about buying a recycled version of battery scrap known as MHP, or mixed hydroxide precipitate, that can be used to make nickel products, according to two sources familiar with the negotiations. Glencore declined to comment. Most of the country's recycled batteries are exported now to China in the form of black mass, essentially shredded battery parts. Green Li-ion, which is headquartered in Singapore, moved its U.S. operations to Oklahoma given the state's history with oil and gas extraction, skills it sees as complementary to black mass processing. "This state has a lot of chemical engineers," said Kevin Hobbie, the company's senior vice president of operations. Oklahoma's foray into the energy transition hasn't been all smooth sailing. Tesla supplier Panasonic (6752.T), opens new tab in 2022 chose Kansas over Oklahoma for a battery plant after the Sunflower State wooed it with $1 billion in incentives. In January, EV startup Canoo ( opens new tab filed for bankruptcy despite a $1 million state grant and Stitt's commitment for his administration to buy 1,000 of the company's vehicles. Canoo, which had several production facilities in Oklahoma, blamed uncertain demand for its cargo vans. State officials say they are trying to recoup the funds. Stitt said he is not bothered by the bankruptcy. "We're going to keep swinging for the fences," he said. The state's education system has also generated negative headlines, due in part to a battle over low standards that could make it difficult to convince high-tech talent and their families to relocate to Oklahoma. The state's pre-kindergarten through twelfth grade educational system, for instance, is ranked 48th out of the 50 U.S. states by U.S. News and World Report, and many schools have moved to a four-day week to save money. Alphabet's (GOOGL.O), opens new tab Google, which built an Oklahoma data center in 2011, donated funds to the local school district in part to attract faculty. Oklahoma's superintendent of schools is an elected position over which Stitt has no control. The governor successfully pushed for a school voucher system that he said should attract more families. "If I create competition, and now a public school has to compete for a student, it's going to make all boats rise and bring more talent to Oklahoma," Stitt said. The governor said he is focused on helping the minerals refiners in his state grow and is lobbying Trump to require federal contractors to increase the percentage of minerals they buy that are processed in the country. That's a key desire also for Long, the Westwin founder, who spent her youth herding cattle, an experience she said inspired her interest in refining and a reticence for mining. "After seeing the beef and meat industry, I learned that the packer is the one that seems to take the least amount of risk and yet makes the most amount of money," she said. "When I saw mining, I was like, 'The miner is the rancher and the refiner is the packer.' So I decided I want to be the packer."
Reuters
2 hours ago
- Reuters
Australian Drone Forge to buy six Airbus Flexrotors
June 18 (Reuters) - Australian aerospace start-up Drone Forge has signed an agreement with Airbus Helicopters ( opens new tab to purchase six Flexrotor uncrewed aerial systems (UAS) comprising 17 aircraft. This would be the largest such order for the Flexrotor to date, Drone Forge said in a statement on Wednesday.
Daily Mail
3 hours ago
- Daily Mail
Pay increase for millions of Australians: Here's what to expect
Millions of Australians will receive a cash boost when minimum wage, superannuation and paid parental leave changes come into effect next month. From July 1, the minimum wage will be increased 3.5 per cent, from $24.10 per hour to $24.95 per hour, affecting more than 2.6million Aussies. The new rate will total $948 per week, based on a 38-hour work week, after the Fair Work Commission decision handed down earlier this month. Nearly 10million Aussies will also get an automatic boost to their retirement savings next month, as the superannuation guarantee rate rises from 11.5 per cent to 12 per cent. It means employers will pay, on average, an extra $317 into employees' super accounts each year. In total, that could mean an extra $132,000 in super for young Australians by the time they retire. The federal government will also start paying super on its paid parental leave scheme, with the change applying to parents who receive parental leave pay on or after July 1. The scheme is also expanding, with the amount of government-funded leave increasing from 20 weeks to 22 weeks on July 1 - part of the Labor government's plan to expand it to 26 weeks by July next year. Also from July 1, Services Australia payments will be indexed (adjusted in line with inflation) by 2.4 per cent. Paid Parental Leave, Family Tax Benefit A and B, the Newborn Supplement, and Multiple Birth Allowance will all receive a modest increase, affecting about 2.4million Australians. For example, a family receiving Family Tax Benefit A will pocket an extra $5 a fortnight. Parents with triplets will receive an extra $120 a year, while first-time parents of a newborn child will pocket an additional $48 over 13 weeks. Minister for Social Services Tanya Plibersek described indexation as a 'crucial way to help families when cost of living rises'. 'Millions of recipients of social security payments will see more money in their bank account,' Plibersek said.
