Month: August 1998

Right, Mr Packer, that one jet to the US, full in cabin service, full service for medical team, landing rights in New York, take-off fee in Sydney. That will be $42,380 plus GST of $4238.”

“”What?” bellows Packer. “Me. You mean I have to pay tax at 10 per cent. I’ve never paid tax at that rate before. I pay exactly how much tax the law requires, not a penny more not a penny less. I’m not a mug.”

“”I’m sorry Mr Packer, the plane does not fly unless the tax is paid.”
Continue reading “1998_08_august_gst what it is”

The case began with a report in the Sunday Age in November 1994. It said, “”The director of the Australian War Memorial, Mr Brendon Kelson, has retired suddenly during an inquiry into dozens of allegations of harassment in the workplace.” It was a poor piece of journalism. Kelson had announced his retirement plan before the inquiry had begun. The so-called inquiry was a

scatter-gun witch-hunt by the Merit Protection Review Agency that had been found defective by the Federal Court. A phone call to Kelson would have put the record straight.

The Age was on toast. It apologised a fortnight later. It offered damages. There were counter offers. There was no agreement. A writ was served and then the matter was in the hands of the lawyers and the legal system.
Continue reading “1998_08_august_fordhambly”

At yesterday’s press conference Prime Minister John Howard used the term GST-free or GST exempt, rather than zero-rated, a term used in “”another document”.

That was an oblique reference to Fightback, the nemesis of his predecessor John Hewson.

Yesterday’s package has several critical differences with Fightback that make it more politically saleable and make it a better proposal.
Continue reading “1998_08_august_fightback comparison”

Federal-state relations will undergo their biggest change since 1942.

In that year, the Commonwealth forcibly took over the states’ income tax regimes. And every year since the states have been dependent on the Commonwealth for annual hand-outs, now called FAGs, or federal assistance grants.

Under yesterday’s package, the states will automatically get all the GST revenue — about $27 billion in the first year of 2000-01. The Commonwealth will collect it on behalf of the states. The states will pay the collection costs but get all the revenue.
Continue reading “1998_08_august_fed-state”

Oh dear, the facts have got in the way of a good story.

I thought bracket creep was alive and well and pushing us into ever higher tax brackets.

In fact, there was virtually no bracket creep in the 1990s. Adjustments to the tax rates eliminated it.

The other myth is that the Howard plan favours the rich. That may or may not be true with respect to the GST, but it is not the case with income tax.
Continue reading “1998_08_august_bracket creep”

Agoods and services tax (GST) of 10 per cent.

GST proceeds to states and territories. Premiers and Chief Ministers must all agree if rate is to change.

Health, education, childcare, hospitals and nursing homes, council rates, water and sewerage charges to be exempt.

Income-tax cuts. 80% of taxpayers to have marginal rate of less than 30%. Top rate of 47% starts at $75,000.
Continue reading “1998_08_august_at a glance”