Following the release of one of Australia’s toughest budgets, state governments are calling for GST reform.
There’s more on that here.
This chart from Treasury compares the value added and sales taxes of 30 OECD countries and shows Australia’s GST at 10% is one of the lowest, sitting below the weighted average and the unweighted average of 17.6%.
While the chart captures data from 2005 some countries have upped tax rates since, including New Zealand which increased GST from 12.5% to 15% in 2010. Australia’s GST hasn’t changed since its introduction by the Howard Government in 2000.
Nordic countries, including Sweden, Norway, Iceland, Finland and Denmark have some of the highest value added tax rates internationally.
Prime Minister Tony Abbott said at the weekend there were no plans to change the GST. So if that’s anything to go by government adverts like this one won’t be on television any time soon.
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