Independent MP Kate Chaney has put forward a bold proposal to increase the Goods and Services Tax (GST) from 10% to 12.5%, with the aim of funding a $3,300 annual payment for every Australian. The plan has ignited discussions on economic fairness and tax reform.
The Proposal
Chaney argues that the additional revenue generated from the GST hike would be redistributed as a universal basic income-style payment, helping to alleviate cost-of-living pressures. "This is about ensuring every Australian benefits from economic growth," she stated.
Potential Impact
Economists are divided on the proposal. Some believe it could stimulate spending and reduce inequality, while others warn it may disproportionately affect low-income households. The plan would require bipartisan support, which remains uncertain.
Public Reaction
Initial public response has been mixed, with some praising the initiative as progressive and others criticising it as an additional burden on consumers. The debate is expected to intensify as more details emerge.
