Senator James McGrath (left), Helen Smith (Compass Institute), Stuart Coward (STEPS Group), DJ McGlynn (Compass Training) consulting with local businesses at Maroochydore Surf Club on Tuesday, February 17. Photo: Richard Bruinsma
Senator James McGrath (left), Helen Smith (Compass Institute), Stuart Coward (STEPS Group), DJ McGlynn (Compass Training) consulting with local businesses at Maroochydore Surf Club on Tuesday, February 17. Photo: Richard Bruinsma Contributed

Nambour senator James McGrath calls for GST on ‘everything’

OUR tax system is old-fashioned and needs an overhaul, says Nambour-based Senator James McGrath.

Mr McGrath has called for a new tax system that includes lower income taxes and a 15% goods and services tax on everything.

He described Australia's tax system as old-fashioned and over-reliant on the taxing of incomes, which accounted for 58% of government earnings - 39% from individuals.

"Personal income tax - especially one with high marginal rates like in Australia - is less than ideal economically," Senator McGrath said in a wide-ranging speech to the senate.

"It discourages people from working and earning more, and has a greater effect on decision-making than a consumption tax."

The senator added the answer to the problem was, in fact, an increased GST that applied to all items.

"It is not popular to say it, but consumption taxes like the GST are amongst the most efficient taxes at our disposal," Senator McGrath said.

"We should follow the lead of our Kiwi cousins: broaden the GST to everything and increase its rate to 15%.

"Accompanying income tax cuts and increased income support for pensioners and others can more than cover concerns about equity for low income earners."



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