Australia to increase GST rate?
"IF you look around the world, where we sit in terms of income tax, we're not really that competitive, whereas in terms of the GST, we're right down the bottom. So the average rate across countries is about 20 per cent. We're at 10 per cent. Whereas we're above the OECD average in terms of income tax."
This is what the New South Wales Premier Mike Baird said in an interview to ABC News, yesterday.
He wants an increase to Australia's goods and services tax (GST) to help state and territory governments meet the increasing costs of healthcare.
According to 2015 OECD data, the average rate of GST in OECD countries is 19.2 per cent, very close to 20 per cent.
In comparison, Australia is a relatively low GST country, having a GST tax rate of 10 per cent. Only three OECD countries have lower GST rates than Australia.
Interestingly, GST was introduced in Australia fifteen years ago but the rate debate continues.
Interestingly, back home, a day after the Cabinet approved incorporation of changes in the landmark GST Bill,the Revenue Secretary said that the Finance Ministry is working closely on a "reasonable" GST rate.
Now, what is "reasonable" to the Government may be "unreasonable" to the trade!