Victoria Labor gov kills any GST increase

The new Victorian Labor gov is standing out starkly from the other Lieberal states. Abbott and cohorts were planning on increasing the goods and services tax. The signs were all there. Speculation in the media and at least one gov minister giving his stamp of approval to the idea. 

Well it turns out just one state can say no having the power to veto any changes. That one state is Victoria. Howard bought in the tax and from memory he had to put such veto powers in to get it up and running. Back then people were very worried about it increasing and it was gaining traction. Especially Kiwi's, with there's going from 10% to 15%.

PREMIER Daniel Andrews has essentially crushed any chances for the broadening of the GST, saying there are no circumstances where he would support an increase in the tax or applying it to fresh food.

Multiple federal MPs have publicly said they would support the broadening of tax, including Wannon MP Dan Tehan, however little can be done with the support of state premiers.

"If Victoria refuses to support it, and we won't, going on food or the rate increasing, then it can't go up," Mr Andrews said.

States have a veto power which means the federal government requires their support for such a change.

"The Goods and Services Tax is not a fair tax because it has no regard for a person's capacity to pay," Mr Andrews said. more