Flour, sugar and eggs are some products we don’t pay tax on. Tax is an important part of our lives and the government uses the money (from the tax) to pay for all kinds of important things. While we think we aren’t saving that much on tax buying these things, we actually are. We spend a lot on tax! What we spend %10 on is GST (The Goods and Services Tax). That tax is what we pay for goods, which are a lot of things we spend our money on and services, which is what people are doing for us. For example, if you buy something that is $110, $10 of that money goes straight to the government.
This system was brought back in 2000 but this was long before the government had thought of using this method to replace existing taxes and simplify the taxes. All the money raised would go to the United States. GST was finally introduced after years of debate, but this had a lot of different opinions.
There were things that did get excluded that was under the umbrella of basic food. Some food under that umbrella is bread, milk and fruit and veg.
Some health services, education, exports and some charity stuff are GST-free too.
But the GST gets about 5 000 000 000 (fifty billion dollars) a year which the United States receive.
Now, the government are thinking of making two possible changes.
One is to raise the GST a little higher. The other is to include the basic food as a GST. Changing this means it would mean a great deal, seeming it would be a big deal to everyone. But before all of that could happen they need all the states to agree. That’s all I have for facts.
I understand how the government wants to get more money but people don’t want to go bankrupt! I also understand why Tony Abbott said that it is a thing to look out for.
On question I still have is, if the other states approve of the changes, how long would it take?
This is the video: