The GST question

Last Saturday 21st April there was a comment in The Mercury from Graeme Turnbull, Hobart. It went like this “ Before lambasting Tasmania for its GST contributions please understand that food sales do not attract the GST and comprise a large percentage of our contribution to Australia.”

This comment gave me pause to consider exactly how Tasmania at 500,000+ people contributes to the Australian economy. How this might be viewed at a GST level . And why our GST revenue is, it seems, perilous at the moment.

This situation needs to be viewed ,in economic terms, well apart from our firmly established contribution to other areas of Australian life including the creative arts, scientific research in medicine/nature/oceans, IT applications, innovation and application of modern technology ( Antarctic shelters/submersibles to the bottom of the Mariana Trench), environmental debate to protect world heritage areas.

Tasmania has many niche industries that contribute to GST but where is the obvious bulk of our contribution to Australia? It would seem that it is vegetable & fruit produce, meat, milk, cheese, fish, honey.

Looking at the GST site for the Australian Taxation Office it seems most of what we produce is not a GST item.

http://www.ato.gov.au/content/downloads/bus18694nat3338072010.pdf

GST-FREE AND TAXABLE FOOD ITEMS

GST-free food

The following foods are GST-free:

■ bread and bread rolls without a sweet coating (such as icing)
or filling – a glaze is not considered a sweet coating
■ cooking ingredients, such as flour, sugar, pre-mixes and
cake mixes
■ fats and oils for cooking
■ unflavoured milk, cream, cheese and eggs
■ spices, sauces and condiments
■ bottled drinking water, fruit or vegetable juice (of at least
90% by volume)
■ tea and coffee (unless ready-to-drink)
■ baby food and infant formula
■ all meats for human consumption (except prepared meals
or savoury snacks)
■ fruit, vegetables, fish and soup (fresh, frozen, dried, canned
or packaged)
■ spreads for bread (such as honey, jam and peanut butter)
■ breakfast cereals.

The Tasmanian economy and the work of many people in this State seems to tick many of these items.

My question to people much more able to answer the question is this.

Is Tasmania at risk of receiving less in GST revenue because we continue to supply the rest of the country with food?