The more than five million baby boomers will soon be able to pay more taxes

Older baby boomers will soon be able to pay more tax after a phone call from a leading accountancy group to broaden the goods and service tax.

The Australia GST has remained unchanged with 10 percent on the price of most goods and services since it made its debut this week 25 years ago.

Fresh food and non -flame -driven milk are exempt as a result of the coalition government of John Howard who closes a deal with the Australian Democrats in the Senate.

These GST – exemptions mean that working Australians – instead of pensioners on the age pension and those in the field of well -being – have a greater tax burden.

Personal income taxes form more than half of the income from the federal government, although the GST was originally designed to reduce income tax.

CPA Australia has stated that this is unfair for younger Australians.

The chief executive of the group, Chris Freeland, said that increasing or broadening the GST would reduce the tax on income tax for those in the labor force.

“GST belongs to every discussion about tax reform,” he said.

A leading accountancy group evokes that the GST will be widened, so that older baby boomers in Australia ultimately pay more taxes (depicted is a shopper in Sydney)

CPA Australia, Chief Executive Chris Freeland (photo) said that broadening or increasing the GST would reduce income tax trouble for those in the labor force

‘Most tax specialists believe that increasing the GST is the key to broaden the total tax basis.

“Lowering dependence on personal income tax would yield more money in the pockets of people and ultimately generate more income to stimulate economic growth.”

The 10 percent GST of Australia is low according to the world standards, where new Zeeland has a GST of 15 percent and the UK has a higher tax of 20 percent with added value with 20 percent.

‘OECD statistics show that Australia has an untenable high burden for income tax, which means that employees and companies contribute much more of the basics Compared to other countries“Said Mr. Freeland.

He said it was time to have an adult conversation about expanding the GST to cover fresh food, such as vegetables, vegetables, not -in flat -like milk and uncooked meat.

“It’s time for an adult conversation about the Australia tax system and the structural weaknesses of the GST,” he said.

“The GST has remained virtually unchanged in the last quarter of century, and its inconsistencies and design errors – such as taxing some foods and not others – have been ignored.”

Money from the GST streams to the states and areas, with New South Wales expects to trust 22.4 percent of his $ 124.2 billion in income in 2025-26.

Treasurer Jim Chalmers admitted last month that he would be open -minded about changes in the GST prior to an economic round table in August (he is depicted with Anthony Albanese)

Treasurer Jim Chalmers admitted last month that he would be open -minded about changes in the GST prior to an economic round table in August.

“What I’m going to try to do – because I know that the States will look over it, I’m not going to try to reject every idea that I know people will bring the round table,” he told the National Press Club in Canberra.

“I suspect that the States will have a view of the GST – it’s not an opinion that I feel historically attracted, but I’m going to try not to shoot in the process of photographing ideas between now and the round table.”

The federal government expects to collect $ 349.7 billion from income tax in 2025-26, 51.7 percent of the income of $ 676.1 billion in revenue from the Commonwealth.

By the 2028-29 financial year, Treasury expects personal income taxes to make up 54 percent of the income, since the receipts of people rose to $ 420.3 billion from a total collection pool of $ 778.3 billion.

Mr Freeland admitted that broadening or increasing the GST would require compensation payments for people with low incomes and age pension.

Australians must be 67 to get the age pension, making them more boomers (depicted is a few at Cronulla in Sutherland Shire in Sydney)

Australians must be 67 Receive the age pensionWhich makes them more boomers. There were 5.4 million baby boomers at the 2021 census.

The youngest boomers turned 60 last year, which made them eligible to gain access to their super and to stop paying a profit tax of 15 percent if they no longer work.

“Of course you also have to look at who would be affected, such as households with a lower income and pensioners, to ensure that they are adequately compensated during the transition,” he said.

Single Australians on the age pension can get $ 1,051.30, rise to $ 1,585 for couples, with the family tube being exempt from the assets test.

Those who sell their family home also escape the wealth tax if it was their most important place of residence and not a reward for an investment possession.

The liberal party among former leader John Hewson lost the 1993 election with a plan for a GST of 15 percent, but it won in 1998 with a plan for a 10 percent GST.