TasCOSS has congratulated the Tasmanian Premier and Treasurer for their strong stance protecting
Tasmanians against the effort at so-called tax ‘reform’ emerging from the Treasurer’s and Leaders
meetings held on Thursday and Friday.
“With the release of NATSEM modeling that finds proposed changes to the GST would
disproportionately impact people on low incomes, we support the Tasmanian Government in opposing
increasing or expanding the GST and we congratulate the Premier and Treasurer for keeping the needs
of Tasmanians on low and moderate incomes in mind in formulating this position on tax reform,” CEO of
TasCOSS Kym Goodes said.
“The purpose of tax is to raise revenue for social investment in the supports and services that enable a
productive economy. The only way to reduce demand for services is to reduce inequality and increase
access to jobs, yet the current proposals increase inequality and do nothing for growth,” Ms Goodes
said.
“Tax reform worthy of the name should pay for essential services our community needs and expects, in
a way that’s fair and causes the least harm to the economy.
“The strong stance taken by the Tasmanian Premier acknowledges the importance of ensuring States
such as Tasmania with a high proportion of low income families are not left to do the heavy lifting. We
know from previous examples, compensation is often eroded over time with changes to family
payments and not able to provide the safeguards states such as Tasmania need to ensure we are able to
adequately fund the services we need.”
Ms Goodes said the best test for reform of taxes and spending was not whether it served the interests
of governments but whether it served the community.
“The argument that growing costs in health, education and community services can either be curbed
with a dose of ‘competition’ or funded through higher economic growth is naïve at best, dangerous at
worst. Public health care costs alone are rising over the long term in all wealthy countries and will rise
further as the population ages. There are still serious gaps in essential services such as early childhood,
affordable housing and dental and mental health, which hold back participation and productivity.
“The ‘deal’ on tax and federalism reform is far from done. Federal, State and Territory governments
have agreed to consider changes along these lines. Before this is taken any further, the public is entitled
to know that the tax reform package will deliver the following:
i. Guaranteed and sufficient revenue to ensure access to quality services, with tied grants
remaining in place (tied grants provide at least some guarantee of access to services for
people across Australia)
ii. An overall package that is not based on a regressive switch from income tax to consumption
taxes including the GST (which shifts taxation from high income earners to low income
earners without providing any guarantee that essential services will be available to those
who need them), and
iii. Tax reform that effectively tackles continuing tax shelters Federally and enables States and
Territories to shift towards more efficient tax basses.”
Kym Goodes, TasCOSS CEO,
