Should Australia raise the GST? It has sat at 10% since July 2000, and the Grattan Institute has made the case for 15%. Ben McEachen from Hope Mornings asks accountant Pete Burrows from Lower Russell and Farr what a higher GST would mean at the checkout, why it can hit lower income households hardest, and what loving your neighbour has to do with tax. You'll learn how a rate rise flows through to your shopping, where you'd feel it most, and the questions worth asking before saying yes or no.

Key Takeaways:
Spend Tax, Not Earn Tax: A GST taxes people when they spend rather than when they earn, which is why a higher rate is usually paired with income tax cuts.
Smaller Than It Sounds: Because shelf prices already include GST, lifting the rate from 10% to 15% adds a little under 5% to items that already carry it.
Exemptions Are the Big Shift: Households would feel it most if GST were extended to things that are GST free today, such as fresh food, health and education.
Who Carries the Cost: The GST is a regressive tax, so lower income households feel price rises more unless welfare or income tax changes offset them.
A Faith Lens on Tax: Loving your neighbour and caring for the vulnerable turn the GST debate into a question of who can absorb extra costs and whether public money is used well.
Spending Matters Too: More tax is no excuse for poor spending, yet the states fund hospitals, schools and roads with very few ways of their own to raise money.

Notable Quotes:
"The theory with the GST or a consumption tax is you tax people when they spend, not when they earn." — Pete Burrows
"Increasing taxes isn't an excuse to have poor spending habits." — Pete Burrows
"It's always easy to ask for more tax. It's probably harder to justify what it's spent on." — Pete Burrows
"When it comes to talking about GST, Pete, it raises issues around is public money being used well and who can absorb extra costs?" — Ben McEachen
"You can't just say no. But if you want to say yes, you need to explain how it's going to be best for the country and everybody in it overall." — Pete Burrows

 

Got a question, comment or personal story to share? Send it through at hopepodcasts.com.au. Ben and Pete will get stuck into it on a future episode.

Pete Burrows is an accountant for small business and individuals with Lower Russell and Farr in Penrith, Western Sydney, Australia.

Ben McEachen hosts Hope Mornings on Hope 103.2FM in Sydney, Australia.

Should Australia raise the GST? It has sat at 10% since July 2000, and the Grattan Institute has made the case for 15%. Ben McEachen from Hope Mornings asks accountant Pete Burrows from Lower Russell and Farr what a higher GST would mean at the checkout, why it can hit lower income households hardest, and what loving your neighbour has to do with tax. You'll learn how a rate rise flows through to your shopping, where you'd feel it most, and the questions worth asking before saying yes or no.
Key Takeaways:
<ul>
<li>Spend Tax, Not Earn Tax: A GST taxes people when they spend rather than when they earn, which is why a higher rate is usually paired with income tax cuts.</li>
<li>Smaller Than It Sounds: Because shelf prices already include GST, lifting the rate from 10% to 15% adds a little under 5% to items that already carry it.</li>
<li>Exemptions Are the Big Shift: Households would feel it most if GST were extended to things that are GST free today, such as fresh food, health and education.</li>
<li>Who Carries the Cost: The GST is a regressive tax, so lower income households feel price rises more unless welfare or income tax changes offset them.</li>
<li>A Faith Lens on Tax: Loving your neighbour and caring for the vulnerable turn the GST debate into a question of who can absorb extra costs and whether public money is used well.</li>
<li>Spending Matters Too: More tax is no excuse for poor spending, yet the states fund hospitals, schools and roads with very few ways of their own to raise money.</li>
</ul>
Notable Quotes:
<ol>
<li>"The theory with the GST or a consumption tax is you tax people when they spend, not when they earn." &mdash; Pete Burrows</li>
<li>"Increasing taxes isn't an excuse to have poor spending habits." &mdash; Pete Burrows</li>
<li>"It's always easy to ask for more tax. It's probably harder to justify what it's spent on." &mdash; Pete Burrows</li>
<li>"When it comes to talking about GST, Pete, it raises issues around is public money being used well and who can absorb extra costs?" &mdash; Ben McEachen</li>
<li>"You can't just say no. But if you want to say yes, you need to explain how it's going to be best for the country and everybody in it overall." &mdash; Pete Burrows</li>
</ol>
&nbsp;
Got a question, comment or personal story to share? Send it through at <a href="https://hope1032.com.au/show/money/">hopepodcasts.com.au</a>. Ben and Pete will get stuck into it on a future episode.
Pete Burrows is an accountant for small business and individuals with <a href="https://www.lrf.com.au/">Lower Russell and Farr</a> in Penrith, Western Sydney, Australia. Ben McEachen hosts <a href="https://hope1032.com.au/programs/hope-mornings/">Hope Mornings on Hope 103.2FM</a> in Sydney, Australia.

Money: Faith & Finance explores the profound and practical of everyday finances. In every episode, we explore the real-life impact of everything from superannuation to stewardship, the World Bank to your wallet – and what does God have to say about money?

Welcome to the profit, loss and real balance sheet of wherever money intersects with you.

Pete Burrows is an accountant for small business and individuals with Lower Russell and Farr in Penrith, Western Sydney, Australia.

Ben McEachen hosts Hope Mornings on Hope 103.2FM in Sydney, Australia.

Money: Faith &amp; Finance explores the profound and practical of everyday finances. In every episode, we explore the real-life impact of everything from superannuation to stewardship, the World Bank to your wallet – and what does God have to say about money? Welcome to the profit, loss and real balance sheet of wherever money intersects with you.
Pete Burrows is an accountant for small business and individuals with <a href="https://www.lrf.com.au/">Lower Russell and Farr</a> in Penrith, Western Sydney, Australia. Ben McEachen hosts <a href="https://hope1032.com.au/programs/hope-mornings/">Hope Mornings on Hope 103.2FM</a> in Sydney, Australia.

Money: Faith & Finance

Listen to more from our Hope Podcasts collection at hopepodcasts.com.au. And send the team a message via Hope 103.2’s app, Facebook or Instagram.

This podcast is not offering financial or investment advice. It's always best to do your own research and to consult a professional financial or investment advisor before making any financial or investment decisions.

Listen to more from our Hope Podcasts collection at <a href="http://www.hopepodcasts.com.au/">hopepodcasts.com.au</a>. And send the team a message via <a href="https://hope1032.com.au/listen/#apps">Hope 103.2’s app</a>, <a href="https://www.facebook.com/Hope103.2">Facebook</a> or <a href="https://www.instagram.com/sydneyshope1032/">Instagram</a>. This podcast is not offering financial or investment advice. It's always best to do your own research and to consult a professional financial or investment advisor before making any financial or investment decisions.