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All goods bought overseas to incur 10% GST
All goods bought over the internet from overseas will be subject to the 10 per cent GST from July 1, 2017, regardless of value, under an agreement crunched between Treasurer Joe Hockey and his state counterparts.
But the Treasurers' meeting today in Canberra failed to agree on a way ahead for broader changes to the GST and the participants also ruled out winding back stamp duty on housing as part of any tax reform, arguing it would overheat the property market in Sydney and Melbourne.
This is despite the ACT having flat house prices despite its government paring back stamp duty several years ago and replacing the revenue with a land tax.
"We don't want to do anything that would add heat to the market in some jurisdictions," Mr Hockey said.
The meeting ended with no clear consensus on tax reform.
The federal government continued to insist any GST increase must be accompanied by income tax cuts to combat bracket creep and ensure there was no net increase in the tax take. NSW and South Australia want the GST increased to 15 per cent from 10 per cent and all the revenue spent on health. Victoria and Queensland are opposed to any increase in the GST and want the Medicare levy doubled to 4 per cent instead.
The Treasurers also shot down an offer by Mr Hockey, made on a TV show in May, to remove the GST from tampons. The exemption required unanimous agreement but some states, led by NSW, preferred to keep the revenue about $50 million a year.
All goods bought over the internet from overseas will be subject to the 10 per cent GST from July 1, 2017, regardless of value, under an agreement crunched between Treasurer Joe Hockey and his state counterparts.
But the Treasurers' meeting today in Canberra failed to agree on a way ahead for broader changes to the GST and the participants also ruled out winding back stamp duty on housing as part of any tax reform, arguing it would overheat the property market in Sydney and Melbourne.
This is despite the ACT having flat house prices despite its government paring back stamp duty several years ago and replacing the revenue with a land tax.
"We don't want to do anything that would add heat to the market in some jurisdictions," Mr Hockey said.
The meeting ended with no clear consensus on tax reform.
The federal government continued to insist any GST increase must be accompanied by income tax cuts to combat bracket creep and ensure there was no net increase in the tax take. NSW and South Australia want the GST increased to 15 per cent from 10 per cent and all the revenue spent on health. Victoria and Queensland are opposed to any increase in the GST and want the Medicare levy doubled to 4 per cent instead.
The Treasurers also shot down an offer by Mr Hockey, made on a TV show in May, to remove the GST from tampons. The exemption required unanimous agreement but some states, led by NSW, preferred to keep the revenue about $50 million a year.
