Legal advice proves Howard can increase or extend GST

8/11/01
The Western Australian Government today received legal advice that the Commonwealth Government did not need the permission of the States to increase the goods and services tax or extend it to food.
Treasurer Eric Ripper told State Parliament he had sought advice from the Crown Solicitor following Prime Minister John Howard's claim that the GST could not be increased without the agreement of all States - and the Federal Member for Kalgoorlie's public support for a GST on food.
"The WA Government's legal advice puts the lie to the claim that the Commonwealth could not act alone in increasing the GST. All that would be required is a simple amendment of the Federal GST laws to remove the so-called State veto," Mr Ripper said.
"That means there is no constitutional protection from John Howard, Peter Costello, and the Federal Member for Kalgoorlie pursuing an increase or extension of the GST."
Mr Ripper said the issue was critical because of comments by Federal Treasurer Peter Costello that 'there is no point in a broad based consumption tax with exemptions'. (SMH 25/10/01).
Further, Kalgoorlie's Federal Liberal Member Barry Haase told ABC radio yesterday he supported the goods and services tax on food.
Opposition Leader Colin Barnett has also described GST food exemptions as 'crazy' (State Parliament, June 28, 2000).
"I challenge the Federal Government to produce any credible legal advice that it has no power to increase the GST," Mr Ripper said.
"Mr Howard's claim is a transparent ruse to lull Australians into a false sense of security about the prospects of wider application of the GST."
Media contact: Darren Foster, 9222 8788
SEE ATTACHED TRANSCRIPT
DATE: NOVEMBER 7, 2001
TIME: 4.20PM
STATION: ABC REGIONAL DRIVE (GREG HAYES/KATE SIEPER)
HAASE
Speaking of GST again, businesses are saying to me the only thing that they'd like to see changed in regard to GST is the application of GST on all products and services and of course that's not the way it is today, unfortunately due to Labor Party..(inaudible).
BROWNING
.Barry, you want the GST on food?
HAASE
Yes, we put.put GST across the board would be the most simplified system; if any .. if we had had GST on all products we would have by now been enjoying far greater personal income tax than was possible under the system opposed by Labor and Democrats and that was most unfortunate and created a great deal of confusion for business people across Australia.
BROWNING
I just want to be very clear about this Greg and Kate - Barry has just said that he wants the GST on food. The Labor Party is going into this election promising to remove the GST from a range of essential things such as the gas and electricity bills, such as women's sanitary products, such as textbooks and such as charities.