Kennedy MP Bob Katter will oppose any changes to the goods and services tax (GST) should the Federal Government look to raise the GST rate in the coming year as has been rumoured in recent weeks.
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The Katter's Australian Party (KAP) leader said he had never been a fan of the GST as he saw it as a tax on those who could least afford it.
"The burden falls into two classes of people. One is the husband and wife and three kids. Even if they're both working, they will spend all their money, they can't save anything, with three kids you can't save any money, but if you are rich you can save money,” he said.
“If you've got an income of $200,000 a year you can save half that income, so as long as you haven't got five or six kids to look after, so half their income is not GST taxed, the husband and wife with three or four kids, all of their income is GST taxed.
"The other class is the retirees. Every cent of their income, almost everyone above 65 that are not still working would fit into this category, they spend all of their incomes, so all of their income is taxed, so there is two classes of people where all of their income is taxed. The other class are the rich people and only half of their income is taxed because they save half their income, so GST is a most unfair tax.”
Mr Katter said he would prefer the introduction of a financial services tax as opposed to a GST. He feels his fellow independent Senators would also be highly opposed to any rise.
"We will be taking in the KAP, the most trenchant opposition to it, and I'm in the process of drafting letters to my house of representatives and senate colleagues, but I'd be surprised if Palmer and Wilkie do not see it the way I see it. Certainly Andrew and I will be moving legislation to try and stop it,” he said.
"We're in a very powerful position and we will use that power to drive the government back in this direction. We will write to all of our senate colleagues. We enjoy a very close relationship with senators such as Maddigan, Xenopohn, senator Lambie, senator Dio Wang, Ricky Muir. We will write to them to plead with them to oppose tenaciously an extension of the goods and services tax."
