Introducing the GST: Tom Elliott’s four-point plan for Malcolm Turnbull

Australia has a revenue problem.

Our tax system delivers about 24% of GDP to the federal government, but the spending is 26%.

Finance expert and 3AW Drive host Tom Elliott today explained why the GST is an efficient tax to fix the deficit (click play above).

And below is his four top tips to Malcolm Turnbull on how to make it happen.

1. TREAT US LIKE ADULTS

The Prime Minister and Scott Morrison need to spend the next 12 months explaining why the GST must go up.

Don’t do what Joe Hockey did last year and surprise us.

2. COMPENSATE

We will need to compensate people on low incomes – pensioners, the unemployed, etc., because the GST can hit them hard.

3. SATISFY THE STATES

You’ve got to get the states on board.

Paul Keating once said don’t ever get between a state premier and a bucket of money or you’ll get knocked over.

Mr Turnbull: Show the states the bucket.

4. SHOW VICTORIA SOME LOVE!

Victoria only gets 86 cents of every $1 we contribute to the GST, because 14 cents goes to beggar states like Tasmania and Queensland.

Victoria deserves 100% of its GST contribution (in fact, if that happened, you could argue we didn’t need the GST increase in the first place).

 

And a late addition supplied by a caller…

5. STOP WASTING MONEY

No explainer necessary.