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Australia Considers Major GST Increase: Proposed Rate Rise from 10% to 15% in 2025

  • Proposed GST Rate Increase: Australia is reviewing a proposal to raise the Goods and Services Tax (GST) rate from 10% to 15%, marking the first increase since the tax’s introduction, which could significantly impact prices for consumers and businesses.
  • Expansion of Taxable Goods and Services: The proposed reforms aim to broaden the GST base by including currently exempt items such as fresh food, health services, childcare, and education-related services, potentially increasing the tax burden on consumers.
  • Taxpayer Relief Measures: To alleviate the financial impact of the proposed GST increase, the government is considering an annual rebate of CAD 3,300 for each taxpayer and will engage with stakeholders in late August 2025 to discuss the reforms and their implications

Source 1stopvat


Increasing GST to 15%: A Fairer Tax System for Younger Australians?

  • Increasing GST to 15 percent could make the tax system fairer for younger Australians
  • The economic roundtable tests Labor’s courage and vision
  • Treasury advised that current budget settings are unsustainable
  • Personal and company taxes are too high; indirect taxes could be a solution
  • Australia’s focus on interest rates hinders discussions on economic future
  • Addressing intergenerational inequity requires courage and vision
  • Current political promises are inadequate for structural challenges
  • Small-target strategies and need for electoral mandate hinder addressing big challenges

Source: theguardian.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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