Working families in NSW will pay a higher GST on their grocery bills, rent payments, visits to the doctor, school fees and childcare under the plan NSW Treasurer Dominic Perrottet launched today.


Labor’s Acting Shadow Treasurer Daniel Mookhey labelled the plan ‘economic vandalism.’ He called on the NSW Treasurer to abandon it.

“Making working families pay the GST every time they buy groceries, visit the doctor, pay rent, pay school fees, or pay childcare fees is a recipe for economic despair,” Mr Mookhey said.

“Hiking the GST during the greatest economic downturn in decades won’t create a single new job. It will risk the jobs of thousands.

‘The Treasurer should spend every waking moment developing a comprehensive jobs plan for NSW – not campaigning for a GST on everything’, Mr Mookhey said.

Mr Perrottet revealed his intentions to expand the GST and hike the rate at the National Press Club today, releasing the NSW Review of Federal Financial Relations report he commissioned last year. It comes weeks after Mr Perrottet sued the State’s 400,000 employees to cut their pay.

Mr Perrottet’s report said:

“State Governments in consultation with the Commonwealth should assess and agree options for lifting the GST rate and/or expanding the base over the medium to longer-term…” 

Mr Mookhey said: “The NSW Opposition is open to discussing tax reform which encourage economic and job growth; reward work and wealth creation; and result in a fair tax system for all.

“But a higher GST on everything, combined with lower pay for hundreds of thousands of working families, robs people of the money they would otherwise spend with local small businesses.

“To create jobs we need working families to spend again. Even mentioning a GST hike amidst a massive economic downturn, could cause working families to shut their wallets when the economy can least afford it.

“Every minute the Treasurer spends campaigning for a GST on everything, is time not spent developing a comprehensive jobs plan for NSW.

“The Government should be prioritising screwdriver-ready and shovel-ready projects like a school building blitz. It should be fast-tracking major infrastructure projects like the M12 at the new Western Sydney Airport. And it should be helping women get back to work by extending free childcare.”


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