- Sep 28, 2008
Can pretty much guarantee your third point will not be a part of any plan
I’m firming my personal bet on:
- Permanent increase in base GST eg 10->15%
- On top of this a temporary increase in GST eg new base of 15% plus extra 5% for X years
- Medicare style levy surcharge for all taxpayers eg +2%, potentially with a +1% extra on high income earners
One of the closest & logical contributions I think.
I'm not an accountant nor an economist or banker or anywhere near associated profession so no specific figures & just guesses:
GST changes will be the easiest & quickest to implement and (1) help the states get back on course (2) give an excuse not to fund a lot of the things the feds currently fund/co-fund. Possibly not just a percentage increase but broadening the base to many of the items currently exempt.
Review with an eye to trimming & lengthening of timelines on capital intensive projects unless there is an associated counterbalance reduction in dole payments.
A lid on foreign donations/assistance
Potentially reduction in the co-funding budgets of education (particularly on the capital side/ new schools) on the basis a lot of distance learning becomes the norm.
Medicare levy increase/surcharge to get back some of the costs of the boost to the healthcare system, pay for the temporary taking over of the private hospital system amongst others and the ongoing costs for PBS, PPE etc until a vaccine is delivered and administered to the majority of the population..
Freezing/delaying of any income tax cuts previously promised. A look at eliminating some heavily used tax deductions/concessions/rorts. Enough to recover revenue losses but not enough to get kicked out of office or lose major backers.
Injection of additional currency into the economy in the hope inflation will catch up in 4-5 years time.
Close scrutiny to see if there is anything they can sell off for a good price.
Less of a focus on free market deals and subtle moves to self reliance in a number of areas especially those that are labour intensive/generate jobs