My 2.2 cents (GST Inc.)

It is a real prick when your opinions are taxed. Australia least powerful political blog. (Plus any other crap I want to talk about.)

Wednesday, June 29, 2005

Petrol Once More

As the price of petrol rises, thus the amount of GST collected on behalf of the states by the Federal government also increases. The federal government claims that all the money is going to the states. But as was pointed out in crikey.com.au today, all this means is that the Commonwealth government doesn't need to give as much money to the states in grants which they pay on top of the GST revenue.
Labor, if they were smart (and less face it at the moment they don't seem to be too smart) they would start proclaiming that they would cut the other Commonwealth Government taxes on the petrol to oppose the rise in money raised by the increasing GST.

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