Latest news with #AustralianCouncilofSocialService
The Advertiser
4 days ago
- Business
- The Advertiser
'Brave' plan to lift GST offers $3300 payment carrot
A bold proposal to give Australians an extra $3300 per year in exchange for a rise in the goods and services tax is being treated with caution by the major parties. Independent MP Kate Chaney calls for the implementation of a "progressive GST model" as the federal government looks for ways to reinvigorate Australia's languishing productivity and strengthen the budget at an economic roundtable. Under the plan first proposed by economist Richard Holden, Australia would lift the rate of the consumption tax from 10 to 15 per cent and apply it to exempt items like food, education and health. But to mitigate the impact on those with lower incomes, all Australians aged 18 and older would be given a $3300 rebate, meaning they would effectively pay no GST on the first $22,000 of their annual expenses. While the GST-free threshold would cost Australia $68.8 billion, increasing the tax and removing exemptions for certain categories would raise $92.7 billion, adding $23.8 billion to the Commonwealth's budget. "The major parties like to talk about tax cuts and spending but they're less willing to discuss where the money will come from," Ms Chaney said. "We have to have courageous conversations about other revenue sources to avoid handballing this problem to future generations." With the government's economic roundtable to convene later in August, Prime Minister Anthony Albanese said he would not respond to every proposal in the meantime. "Governments make government policy," he told reporters in Melbourne on Thursday. "Our tax policy - the only tax policy that we're implementing - is the one that we took to the election ... which is reducing income taxes." Opposition finance spokesman James Patterson said he was concerned two-thirds of revenue generated by Ms Chaney's proposal would be used to compensate Australians for the tax it collects. He warned against tax on spending in areas carved out of the GST when it was introduced more than two decades ago, such as education and health. "The Howard government recognised that people who spend their money on private health or private education are actually taking a burden off the public purse, and therefore it would be unjust to tax them on top of that," he told Sky News. It would be an "incredibly brave government" that put a tax on top of insurance and private education fees, Senator Patterson said. Meanwhile, the Australian Council of Social Service has called for a halving of the capital gains tax discount, a 15 per cent tax on superannuation retirement accounts and a commonwealth royalty payment for offshore gas. It urges the government to strengthen the not-for-profit sector by supporting digital transformation and making service users the centrepiece of governance and program design. All policies developed at the roundtable should be assessed on how they improve the wellbeing of people and the natural environment while taking gender and other factors into account, the council said. "We must better prepare and train people for jobs and finally lift income support to levels that don't trap people in poverty and destitution," Dr Goldie said. A bold proposal to give Australians an extra $3300 per year in exchange for a rise in the goods and services tax is being treated with caution by the major parties. Independent MP Kate Chaney calls for the implementation of a "progressive GST model" as the federal government looks for ways to reinvigorate Australia's languishing productivity and strengthen the budget at an economic roundtable. Under the plan first proposed by economist Richard Holden, Australia would lift the rate of the consumption tax from 10 to 15 per cent and apply it to exempt items like food, education and health. But to mitigate the impact on those with lower incomes, all Australians aged 18 and older would be given a $3300 rebate, meaning they would effectively pay no GST on the first $22,000 of their annual expenses. While the GST-free threshold would cost Australia $68.8 billion, increasing the tax and removing exemptions for certain categories would raise $92.7 billion, adding $23.8 billion to the Commonwealth's budget. "The major parties like to talk about tax cuts and spending but they're less willing to discuss where the money will come from," Ms Chaney said. "We have to have courageous conversations about other revenue sources to avoid handballing this problem to future generations." With the government's economic roundtable to convene later in August, Prime Minister Anthony Albanese said he would not respond to every proposal in the meantime. "Governments make government policy," he told reporters in Melbourne on Thursday. "Our tax policy - the only tax policy that we're implementing - is the one that we took to the election ... which is reducing income taxes." Opposition finance spokesman James Patterson said he was concerned two-thirds of revenue generated by Ms Chaney's proposal would be used to compensate Australians for the tax it collects. He warned against tax on spending in areas carved out of the GST when it was introduced more than two decades ago, such as education and health. "The Howard government recognised that people who spend their money on private health or private education are actually taking a burden off the public purse, and therefore it would be unjust to tax them on top of that," he told Sky News. It would be an "incredibly brave government" that put a tax on top of insurance and private education fees, Senator Patterson said. Meanwhile, the Australian Council of Social Service has called for a halving of the capital gains tax discount, a 15 per cent tax on superannuation retirement accounts and a commonwealth royalty payment for offshore gas. It urges the government to strengthen the not-for-profit sector by supporting digital transformation and making service users the centrepiece of governance and program design. All policies developed at the roundtable should be assessed on how they improve the wellbeing of people and the natural environment while taking gender and other factors into account, the council said. "We must better prepare and train people for jobs and finally lift income support to levels that don't trap people in poverty and destitution," Dr Goldie said. A bold proposal to give Australians an extra $3300 per year in exchange for a rise in the goods and services tax is being treated with caution by the major parties. Independent MP Kate Chaney calls for the implementation of a "progressive GST model" as the federal government looks for ways to reinvigorate Australia's languishing productivity and strengthen the budget at an economic roundtable. Under the plan first proposed by economist Richard Holden, Australia would lift the rate of the consumption tax from 10 to 15 per cent and apply it to exempt items like food, education and health. But to mitigate the impact on those with lower incomes, all Australians aged 18 and older would be given a $3300 rebate, meaning they would effectively pay no GST on the first $22,000 of their annual expenses. While the GST-free threshold would cost Australia $68.8 billion, increasing the tax and removing exemptions for certain categories would raise $92.7 billion, adding $23.8 billion to the Commonwealth's budget. "The major parties like to talk about tax cuts and spending but they're less willing to discuss where the money will come from," Ms Chaney said. "We have to have courageous conversations about other revenue sources to avoid handballing this problem to future generations." With the government's economic roundtable to convene later in August, Prime Minister Anthony Albanese said he would not respond to every proposal in the meantime. "Governments make government policy," he told reporters in Melbourne on Thursday. "Our tax policy - the only tax policy that we're implementing - is the one that we took to the election ... which is reducing income taxes." Opposition finance spokesman James Patterson said he was concerned two-thirds of revenue generated by Ms Chaney's proposal would be used to compensate Australians for the tax it collects. He warned against tax on spending in areas carved out of the GST when it was introduced more than two decades ago, such as education and health. "The Howard government recognised that people who spend their money on private health or private education are actually taking a burden off the public purse, and therefore it would be unjust to tax them on top of that," he told Sky News. It would be an "incredibly brave government" that put a tax on top of insurance and private education fees, Senator Patterson said. Meanwhile, the Australian Council of Social Service has called for a halving of the capital gains tax discount, a 15 per cent tax on superannuation retirement accounts and a commonwealth royalty payment for offshore gas. It urges the government to strengthen the not-for-profit sector by supporting digital transformation and making service users the centrepiece of governance and program design. All policies developed at the roundtable should be assessed on how they improve the wellbeing of people and the natural environment while taking gender and other factors into account, the council said. "We must better prepare and train people for jobs and finally lift income support to levels that don't trap people in poverty and destitution," Dr Goldie said. A bold proposal to give Australians an extra $3300 per year in exchange for a rise in the goods and services tax is being treated with caution by the major parties. Independent MP Kate Chaney calls for the implementation of a "progressive GST model" as the federal government looks for ways to reinvigorate Australia's languishing productivity and strengthen the budget at an economic roundtable. Under the plan first proposed by economist Richard Holden, Australia would lift the rate of the consumption tax from 10 to 15 per cent and apply it to exempt items like food, education and health. But to mitigate the impact on those with lower incomes, all Australians aged 18 and older would be given a $3300 rebate, meaning they would effectively pay no GST on the first $22,000 of their annual expenses. While the GST-free threshold would cost Australia $68.8 billion, increasing the tax and removing exemptions for certain categories would raise $92.7 billion, adding $23.8 billion to the Commonwealth's budget. "The major parties like to talk about tax cuts and spending but they're less willing to discuss where the money will come from," Ms Chaney said. "We have to have courageous conversations about other revenue sources to avoid handballing this problem to future generations." With the government's economic roundtable to convene later in August, Prime Minister Anthony Albanese said he would not respond to every proposal in the meantime. "Governments make government policy," he told reporters in Melbourne on Thursday. "Our tax policy - the only tax policy that we're implementing - is the one that we took to the election ... which is reducing income taxes." Opposition finance spokesman James Patterson said he was concerned two-thirds of revenue generated by Ms Chaney's proposal would be used to compensate Australians for the tax it collects. He warned against tax on spending in areas carved out of the GST when it was introduced more than two decades ago, such as education and health. "The Howard government recognised that people who spend their money on private health or private education are actually taking a burden off the public purse, and therefore it would be unjust to tax them on top of that," he told Sky News. It would be an "incredibly brave government" that put a tax on top of insurance and private education fees, Senator Patterson said. Meanwhile, the Australian Council of Social Service has called for a halving of the capital gains tax discount, a 15 per cent tax on superannuation retirement accounts and a commonwealth royalty payment for offshore gas. It urges the government to strengthen the not-for-profit sector by supporting digital transformation and making service users the centrepiece of governance and program design. All policies developed at the roundtable should be assessed on how they improve the wellbeing of people and the natural environment while taking gender and other factors into account, the council said. "We must better prepare and train people for jobs and finally lift income support to levels that don't trap people in poverty and destitution," Dr Goldie said.
Perth Now
5 days ago
- Business
- Perth Now
Productivity spruikers urged to keep battlers in mind
Tackling financial inequality is being touted as a productivity boost ahead of an economic think-fest designed to plot Australia's future. Raising revenue via tax reform and rethinking how community services are funded are on the wishlist of the Australian Council of Social Service ahead of the three-day Economic Reform Roundtable later in August. Lifting GST levels to reduce reliance on income tax would "undermine fairness" and do nothing to improve economic efficiency, the council's chief executive Cassandra Goldie said. "The extra revenue we need to fund care and community services, schools, and an income support system that protects people from poverty must come from those with the most capacity to pay - not those doing it toughest," she said. "The government must not waste this historic chance to put Australia on a fairer, more productive and more sustainable financial footing." The council's submission calls for a halving of the capital gains tax discount, a 15 per cent tax on superannuation retirement accounts and a commonwealth royalty payment for offshore gas. It urges the government to strengthen the not-for-profit sector by supporting digital transformation and making service users the centrepiece of governance and program design. All policies developed at the roundtable should be assessed on how they improve the wellbeing of people and the natural environment while taking gender and other factors into account, the council said. "We must better prepare and train people for jobs and finally lift income support to levels that don't trap people in poverty and destitution," Dr Goldie said. The Productivity Commission has proposed cutting the income tax rate to 20 per cent for firms earning less than $1 billion while introducing a five per cent tax on cashflow, which it says would reap $14 billion without worsening budget sustainability. But business groups argue productivity will not be fixed by taxing companies and making Australia less competitive. Treasurer Jim Chalmers said finding ways to afford tax reform was crucial. "Some people have embraced that challenge. Others haven't," he said. "It's a good thing (the commission) is testing some of these difficult ideas and trade-offs ... I'm not surprised not everybody forms an orderly queue, but it's an important input."
West Australian
5 days ago
- Business
- West Australian
Productivity spruikers urged to keep battlers in mind
Tackling financial inequality is being touted as a productivity boost ahead of an economic think-fest designed to plot Australia's future. Raising revenue via tax reform and rethinking how community services are funded are on the wishlist of the Australian Council of Social Service ahead of the three-day Economic Reform Roundtable later in August. Lifting GST levels to reduce reliance on income tax would "undermine fairness" and do nothing to improve economic efficiency, the council's chief executive Cassandra Goldie said. "The extra revenue we need to fund care and community services, schools, and an income support system that protects people from poverty must come from those with the most capacity to pay - not those doing it toughest," she said. "The government must not waste this historic chance to put Australia on a fairer, more productive and more sustainable financial footing." The council's submission calls for a halving of the capital gains tax discount, a 15 per cent tax on superannuation retirement accounts and a commonwealth royalty payment for offshore gas. It urges the government to strengthen the not-for-profit sector by supporting digital transformation and making service users the centrepiece of governance and program design. All policies developed at the roundtable should be assessed on how they improve the wellbeing of people and the natural environment while taking gender and other factors into account, the council said. "We must better prepare and train people for jobs and finally lift income support to levels that don't trap people in poverty and destitution," Dr Goldie said. The Productivity Commission has proposed cutting the income tax rate to 20 per cent for firms earning less than $1 billion while introducing a five per cent tax on cashflow, which it says would reap $14 billion without worsening budget sustainability. But business groups argue productivity will not be fixed by taxing companies and making Australia less competitive. Treasurer Jim Chalmers said finding ways to afford tax reform was crucial. "Some people have embraced that challenge. Others haven't," he said. "It's a good thing (the commission) is testing some of these difficult ideas and trade-offs ... I'm not surprised not everybody forms an orderly queue, but it's an important input."
Perth Now
23-07-2025
- Business
- Perth Now
Calls for consumption tax to be off the roundtable menu
A push to raise the GST as part of the government's economic roundtable is being met with resistance, with the community services sector warning it would increase the burden on low-income earners. A number of prominent economists have advocated raising or broadening the 10 per cent GST to fund cuts to less-efficient levies such as income taxes. Australian Council of Social Service chief executive Cassandra Goldie objects to the proposal on the grounds it would increase inequality. "We need a fairer and more effective tax system that secures the revenue we need to fund essential services and safety nets while encouraging more productive investment to create jobs and lift living standards," she said. "This can be done with reforms that lift productivity and overall revenue without increasing the burden for people on low and modest incomes." While Prime Minister Anthony Albanese has said increasing the tax on consumption does not fit with his agenda, Labor is pledging to overhaul Australia's tax system as part of an economic roundtable in August. The summit is aimed at kick-starting the nation's stalled productivity growth and living standards. Shifting from income to consumption tax would ease the burden on younger working Australians but it would also widen wealth inequality, deepen poverty and deliver only modest economic efficiency gains, a report produced by the council found. Broadly speaking, personal income tax is more progressive than the GST because people pay a higher rate the more they earn, whereas low-income earners tend to pay a higher proportion of their money on consumption taxes than people on higher incomes who save more. Instead, the government should take steps that reduce inequality while lifting productivity and revenue, report author Peter Davidson found. To that aim, they could tighten loopholes for family and corporate trusts, limit negative gearing, reduce tax concessions on superannuation and halve the 50 per cent discount on the capital gains tax. Changing the capital gains tax discount has been backed in by the Greens and Labor-aligned think tank the McKell Institute, which argued it could be tweaked to encourage new housing supply and make it easier for Australians to own their own home. Prospective homebuyers hoping for lower mortgage rates could get a clearer indication of the Reserve Bank's next move on Thursday when governor Michele Bullock speaks for the first time since a surprise surge in unemployment last week. Ms Bullock will talk about the RBA's dual mandate of maintaining low inflation and unemployment in a speech to the Anika Foundation in Sydney.
The Advertiser
27-06-2025
- Business
- The Advertiser
Captains of industry, unions sit at economic roundtable
Trade unionists, business leaders and welfare advocates are among the confirmed guests for the federal government's economic summit. August's productivity roundtable will include ACTU secretary Sally McManus, Business Council of Australia chief executive Bran Black, Australian Council of Social Service head Cassandra Goldie along with productivity commissioner Danielle Wood. Australian Chamber of Commerce and Industry chief executive Andrew McKellar and Australian Industry Group head Innes Willox are also confirmed, as is ACTU president Michele O'Neil and Council of Small Business Organisations of Australia chair Matthew Addison. The summit will look to find ways to boost flagging levels of productivity in the economy. "Each participant will play an important role in helping to shape our national reform priorities to boost productivity, strengthen our resilience and improve budget sustainability," Treasurer Jim Chalmers said. "This initial group includes leading voices from business, unions, the community sector and our key economic institutions. "This is a representative group that we're asking to provide ideas and build and advance consensus around them." It comes after the treasurer extended an invitation earlier in the week to opposition counterpart Ted O'Brien. The summit will be held over three days in Canberra. Dr Chalmers said the roundtable would include opportunities for state and territory representatives to contribute, as well as those on the cross bench in federal parliament. "More invitations will be issued in tranches and in due course as the agenda takes shape," he said. "We will bring additional stakeholders, experts and representative groups to the roundtable, including for specific days, sessions and topics." Members of the public are also urged to offer ideas, with submissions open until late July. "We welcome proposals to improve productivity, build economic resilience in the face of global uncertainty, and strengthen budget sustainability," Dr Chalmers said. The ideas would need to meet criteria including being in the national interest, be positive for the federal, as well as being specific. Experts are concerned about Australia's lagging growth in productivity - a key economic measure of efficiency and long-term driver of improved living standards. The Business Council's chief executive said he looked forward to providing practical solutions the productivity challenge. "Productivity growth is the best way to sustainably lift living standards for all Australians, which is why it is critical that there is constructive engagement between all stakeholders," Mr Black said. Trade unionists, business leaders and welfare advocates are among the confirmed guests for the federal government's economic summit. August's productivity roundtable will include ACTU secretary Sally McManus, Business Council of Australia chief executive Bran Black, Australian Council of Social Service head Cassandra Goldie along with productivity commissioner Danielle Wood. Australian Chamber of Commerce and Industry chief executive Andrew McKellar and Australian Industry Group head Innes Willox are also confirmed, as is ACTU president Michele O'Neil and Council of Small Business Organisations of Australia chair Matthew Addison. The summit will look to find ways to boost flagging levels of productivity in the economy. "Each participant will play an important role in helping to shape our national reform priorities to boost productivity, strengthen our resilience and improve budget sustainability," Treasurer Jim Chalmers said. "This initial group includes leading voices from business, unions, the community sector and our key economic institutions. "This is a representative group that we're asking to provide ideas and build and advance consensus around them." It comes after the treasurer extended an invitation earlier in the week to opposition counterpart Ted O'Brien. The summit will be held over three days in Canberra. Dr Chalmers said the roundtable would include opportunities for state and territory representatives to contribute, as well as those on the cross bench in federal parliament. "More invitations will be issued in tranches and in due course as the agenda takes shape," he said. "We will bring additional stakeholders, experts and representative groups to the roundtable, including for specific days, sessions and topics." Members of the public are also urged to offer ideas, with submissions open until late July. "We welcome proposals to improve productivity, build economic resilience in the face of global uncertainty, and strengthen budget sustainability," Dr Chalmers said. The ideas would need to meet criteria including being in the national interest, be positive for the federal, as well as being specific. Experts are concerned about Australia's lagging growth in productivity - a key economic measure of efficiency and long-term driver of improved living standards. The Business Council's chief executive said he looked forward to providing practical solutions the productivity challenge. "Productivity growth is the best way to sustainably lift living standards for all Australians, which is why it is critical that there is constructive engagement between all stakeholders," Mr Black said. Trade unionists, business leaders and welfare advocates are among the confirmed guests for the federal government's economic summit. August's productivity roundtable will include ACTU secretary Sally McManus, Business Council of Australia chief executive Bran Black, Australian Council of Social Service head Cassandra Goldie along with productivity commissioner Danielle Wood. Australian Chamber of Commerce and Industry chief executive Andrew McKellar and Australian Industry Group head Innes Willox are also confirmed, as is ACTU president Michele O'Neil and Council of Small Business Organisations of Australia chair Matthew Addison. The summit will look to find ways to boost flagging levels of productivity in the economy. "Each participant will play an important role in helping to shape our national reform priorities to boost productivity, strengthen our resilience and improve budget sustainability," Treasurer Jim Chalmers said. "This initial group includes leading voices from business, unions, the community sector and our key economic institutions. "This is a representative group that we're asking to provide ideas and build and advance consensus around them." It comes after the treasurer extended an invitation earlier in the week to opposition counterpart Ted O'Brien. The summit will be held over three days in Canberra. Dr Chalmers said the roundtable would include opportunities for state and territory representatives to contribute, as well as those on the cross bench in federal parliament. "More invitations will be issued in tranches and in due course as the agenda takes shape," he said. "We will bring additional stakeholders, experts and representative groups to the roundtable, including for specific days, sessions and topics." Members of the public are also urged to offer ideas, with submissions open until late July. "We welcome proposals to improve productivity, build economic resilience in the face of global uncertainty, and strengthen budget sustainability," Dr Chalmers said. The ideas would need to meet criteria including being in the national interest, be positive for the federal, as well as being specific. Experts are concerned about Australia's lagging growth in productivity - a key economic measure of efficiency and long-term driver of improved living standards. The Business Council's chief executive said he looked forward to providing practical solutions the productivity challenge. "Productivity growth is the best way to sustainably lift living standards for all Australians, which is why it is critical that there is constructive engagement between all stakeholders," Mr Black said. Trade unionists, business leaders and welfare advocates are among the confirmed guests for the federal government's economic summit. August's productivity roundtable will include ACTU secretary Sally McManus, Business Council of Australia chief executive Bran Black, Australian Council of Social Service head Cassandra Goldie along with productivity commissioner Danielle Wood. Australian Chamber of Commerce and Industry chief executive Andrew McKellar and Australian Industry Group head Innes Willox are also confirmed, as is ACTU president Michele O'Neil and Council of Small Business Organisations of Australia chair Matthew Addison. The summit will look to find ways to boost flagging levels of productivity in the economy. "Each participant will play an important role in helping to shape our national reform priorities to boost productivity, strengthen our resilience and improve budget sustainability," Treasurer Jim Chalmers said. "This initial group includes leading voices from business, unions, the community sector and our key economic institutions. "This is a representative group that we're asking to provide ideas and build and advance consensus around them." It comes after the treasurer extended an invitation earlier in the week to opposition counterpart Ted O'Brien. The summit will be held over three days in Canberra. Dr Chalmers said the roundtable would include opportunities for state and territory representatives to contribute, as well as those on the cross bench in federal parliament. "More invitations will be issued in tranches and in due course as the agenda takes shape," he said. "We will bring additional stakeholders, experts and representative groups to the roundtable, including for specific days, sessions and topics." Members of the public are also urged to offer ideas, with submissions open until late July. "We welcome proposals to improve productivity, build economic resilience in the face of global uncertainty, and strengthen budget sustainability," Dr Chalmers said. The ideas would need to meet criteria including being in the national interest, be positive for the federal, as well as being specific. Experts are concerned about Australia's lagging growth in productivity - a key economic measure of efficiency and long-term driver of improved living standards. The Business Council's chief executive said he looked forward to providing practical solutions the productivity challenge. "Productivity growth is the best way to sustainably lift living standards for all Australians, which is why it is critical that there is constructive engagement between all stakeholders," Mr Black said.
