Page 12 - FWP Wealth Adviser newsletter - July 2025: Issue 116

ISSUE 116
JULY 2025

Conclusion: An Unavoidable Debate with Real lower-income households, it is crucial that the debate focus-
Consequences es on timing, fairness, and the broader economic context.
The debate over raising the GST has returned because, If a GST increase is indeed inevitable, it is vital that
in many respects, it was always inevitable. Australia’s fiscal governments communicate clearly, design effective com-
challenges demand new solutions, and the GST remains one pensation measures, and remain responsive to the needs
of the few levers left to pull. of all Australians. Only then can the country navigate this
Yet, the timing of this renewed push could not be worse for challenging transition with resilience and fairness.
households already struggling with rising costs. The impact
will be felt across the economy, with consumer spending
likely to slow and inequality risks increasing. References
Australians should not be surprised that politicians are • Graham Hand, “Raising GST to 15%,” Firstlinks, 2024;
considering a GST hike. The warning signs have been there • John Freebairn, “Australia’s GST: Time for a Rethink?” The Conversation,
for years. What matters now is that the debate remains 2023;
open, transparent, and focused on the real-world conse- • Danielle Wood, “Tax Reform: Why the GST Should Be Broader and
quences for ordinary people. As this issue moves forward, Higher,” Grattan Institute, 2023;
public scrutiny and informed discussion will be more • Nassim Khadem, “How Would Raising the GST Affect Australian
important than ever. Households?” ABC News, 2023;
The prospect of a GST increase is a reminder that • Emma Rapaport, “Managing Wealth in an Evolving Tax Landscape,”
Australia’s tax system—and the broader economic envi- Morningstar Australia, 2024;
ronment—is constantly evolving. While the consequences • James Eyers, “Building Financial Resilience: Lessons from Recent
of such a change would be significant, especially for Economic Shocks,” Australian Financial Review, 2024.

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