I have been listening to the campaigning by the Liberal party of late (the equivalent to the Tories or Tea Party); Australia is in the grip of an election campaign – for the next month, and one of the things that the Liberal’s have stated is that the cost of living pressures have increased principally due to the carbon tax, which taxes carbon pollution.
While I don’t agree with the carbon tax, in its current format at least, it has been interesting campaigning by the Liberals.
Ever since the Labor party introduced the Carbon Tax, the Liberals have campaigned against it, constantly telling the public that it will drive families and businesses to the wall.
- Firstly, families were compensated for it, with a massive cut to their personal income tax rate.
- Secondly the tax doesn’t actually add that much to our bills, even though the Liberals suggest otherwise.
There was a survey done recently, by poll, which determined that peoples belief of how the tax had affected them was far in excess to the actual impact.
[I have not been able to find the actual poll, or where I read/heard this, but I believe that it was an ABC podcast from Radio National.]
Today I carried out an analysis of all of my bills for the last 12 months, this included almost every single expense that our household paid out, and found that the carbon tax impacted me by around $133. This was for a suggested increase of 10% on gas and electricity costs. While this doesn’t show an impact of slightly higher expenses associated with higher costs of groceries, I personally didn’t notice any increase in those over the last 12 months – though this is obviously anecdotal.
BUT what I did find was that the cost of the GST (Goods and Services Tax, VAT or whatever you want to call it) for the last financial year was vast. This equated to a direct $1,495 cost to our household bills.
I note however, that at present the GST does not increase the cost of fresh food, but does include prepared food – i.e. restaurants, cafes, cakes etc…
What is remarkable about this whole debate, is that the Liberals have suggested that the GST might be expanded to cover the cost of company tax cuts that they want to provide. This is likely to cover fresh food, and possibly an increase from the current 10% to perhaps 12% or more.
During an interview with Tony Abbott, the opposition leader, he stated that there would be no increase in the GST if he were elected. However, in the same sentence he added “unless the states and territories want it”.
What he didn’t say was that they DO want it, and they want it expanded – and have done so for a LONG time. The states and territories want it expanded to cover fresh food, and they want it increased. The States and Territories are almost entirely run by Liberals.
Remarkably in an interview recently, a Liberal candidate suggested that his door knocking told him that families are struggling under the increased cost of living. He suggested that this was due to the Carbon Tax.
This is a hilarious interview and deserves viewing. The guy is a complete clown, and can’t answer any questions or provide more details other than slogans!
But if the Liberals cut the Carbon Tax, it will provide only a tiny saving to families of (at least for our family) of just $133.
If however the GST were to be removed, the saving would be $1500…
However I note that a recent review of the GST suggested that if fresh food were included in the GST mix, the cost to an average family would be around $3000 per year.
So Abbott wants to cut the carbon tax, which could possibly save us $133 per year, but wants to increase the GST which might cost us $3000 dollars per year.
Hmmm, food for thought!
Perhaps Tony should go back wearing his funny hat!
That’s it for now.