Media Release

Crossbenchers from both the Upper and Lower Houses of Parliament joined forces yesterday in a united front against any increase to the GST – a tax which they unanimously agreed hits the lowest paid people in society the hardest.

Member for Kennedy Bob Katter joined Member for Denison Andrew Wilkie, Senator Nick Xenophon and Senator Glenn Lazarus in a press conference at Parliament House to oppose the tax increase. Mr Katter said they were speaking out to head off debate around raising the GST before it gathered political momentum.

“The Government is putting their toe in the water – well we have been around a long time and we’ve seen this many times before – they’re putting their toe in the water and we threw a few piranha into the water today,” Mr Katter said.

“We’re here to oppose any increase to the GST and there are a number of other Senators who have also made very strong statements along these lines.

“Because you couldn’t have a more clear cut case of reverse Robin Hood.

“The Government has said they’d lower taxation, but they’re doing that by increasing taxation on the poor – the people that spend all of their income on GST taxable items.

“If you are a young family with two or three kids and by necessity you spend all of your weekly income, you pay 15% tax on your entire income.

“But if you are say a Politician on a generous salary you should be saving half of it – except for the fact that I’m married, but I should be saving half of it – meaning I only pay 15% tax on half my income.

“If the Government are looking for money Telstra bosses are paid nearly $10 million, the big bank bosses are paid nearly $10 million, the head of Qantas is paid nearly $10 million, as are the now privatised government bosses – let’s have a look at them.

“Let’s have a look at the imports which do not attract GST, if you mail order under goods $1,000.

“Let’s have a look at taxing share transactions or sales of the Australian dollar.

“There are a hundred other ways Government could raise more money,” Mr Katter said.

Mr Katter said those living in rural and regional Australia were also disadvantaged through the GST due to transportation costs, meaning the tax was applied at least twice over.

“We pay GST on transportation, and transportation is about 20 or 30 percent of the product cost, so we’re not only paying the 15% tax on the goods, but we are paying 15% tax on the transportation.

“So it’s an increase, on an increase, on an increase – it compounds dramatically in regional areas of Australia,” Mr Katter said.