Responding to Proposed Changes to the Tax System

	*Geelong Deanery*

Responding to Proposed Changes to the Tax System

The Geelong Catholic Social Justice Committee (GCSJC), along with other community groups and individuals, has taken the opportunity to make submissions to the inquiries undertaken by several Senate Committees into the GST and a new tax system. Two submissions were made on behalf of the GCSJC.

The first submission was lodged with the Senate Select Committee on a New Tax System on 29 January 1999. The ethical principle on which the submission was based is that the function of governments in human society is to exercise their legitimate authority in matters in which they are competent to advance the common good. The submission asserted that the common good clearly encompasses a just taxation system.

The submission argued that a just taxation system must be a progressive system, that is, one that levies from each according to their ability to pay.

The submission identified and discussed the following concerns with the tax reform proposals:

• That the proposed GST, being based upon consumption rather than on capacity to pay, could inflict an injustice by restricting essential consumption of such necessities of life as housing and food.

• That the proposed tax reforms may distribute the burden of taxation unfairly in several ways.

• That the package fails to protect other elements of the common good, such as our finite resources and environment by neglecting environmental and resources taxes.

The second submission was addressed to the Senate Community Affairs References Committee and was also lodged during January. It dealt with the specific subject of the tax effects of a GST on low-income households. (Some of these effects are discussed in an article elsewhere in this issue of Justice News.)

This submission made the following recommendations:

• That the Commonwealth and State Governments ensure that a GST does not disadvantage low-income households in public, community and private rental housing.

• That the Commonwealth and State Governments ensure that the compensation package for low-income households is not considered as income for the calculation of rent.

• That the Commonwealth and State Governments ensure that a GST does not reduce the amount of finance effectively available for social housing.

• That the Commonwealth and State Governments closely monitor and review any impact on housing and housing related costs for low income households in public, community and private rental.

The first submission was prepared by Michael Leahy and the second by Bill Snowdon. In both cases assistance was provided by Patrick Rowan, Shirley Carroll, Margrette Lewis and John Day.

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