Labor looks at cost of Christmas lunch under 15% GST

LABOR is doing its best to make anyone who supports a 15% GST look like a turkey, producing a silly season website to show how much groceries would cost if bought after the tax hike.

Acting opposition leader Tanya Plibersek said a new website by Labor's GST taskforce illustrated how typical Christmas lunch items would rise in price under the tax increase.

It shows a $56 8kg ham costing $64.40 and $8 cherries at $9.20/kg, tiger prawns up from $27 to $31.50/kg and $4 mangoes at $4.60 each.

"A 15% GST on everything - a Christmas ham, children's presents, as well as health and education - is going to significantly increase the stress on family budgets," she said.

Any change to the GST would most hurt those who could least afford it, she said.

Labor will organise public forums across the nation next year to address the potential GST rise.

Labor GST taskforce chair Sharon Claydon said, "We've heard from families worried about how an increased GST would impact their ability to put Christmas lunch on the table and small business owners worried about the impact an increased GST will have on consumer confidence and by extension their bottom line."

Earlier this month, federal Treasurer Scott Morrison and state treasurers met to consider reforms to the GST, including an increase from its current 10% to 15%.

No agreement has been reached between the states and the Commonwealth, but the federal government will release a tax options paper next year.

South Australian Premier Jay Weatherill has suggested an increase in the GST to 15%, with the Commonwealth picking up the extra 5% in return for giving the states a share of income tax returns.



8kg ham: $56, would rise to $64.40

1kg cherries: $8, would rise to $9.20

1kg tiger prawns: $27, would rise to $31.50

Mangoes: $4, would rise to $4.60 each

800g potato salad: $6, would rise to $6.90

1kg vine-ripened cherry tomatoes: $10, would rise to $11.50

Three baby shirts: $30, would rise to $31.36

Baby doll toy set: $40, would rise to $41.82

Source: Labor Party

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