Fed: Labor promises GST cuts without touching state money

AAP General News (Australia)
02-18-2000
Fed: Labor promises GST cuts without touching state money

Opposition Leader KIM BEAZLEY has promised the states they won't be financially hurt
by a federal Labor government rolling back the GST.

But Treasurer PETER COSTELLO claims the promise means Mr BEAZLEY is committing Labor
to raising income taxes to make up the money lost from the new tax.

Mr BEAZLEY says Labor would roll back the GST on health, education and the charities.

But he says he will neither reduce the payments to the states from the GST which the
coalition government negotiated, nor cut special purpose grants.

However Mr COSTELLO says that can only be done by putting the commonwealth budget into
serious deficit or increasing income tax.

Mr BEAZLEY's also pledged to lift the percentage of Australians finishing high school
from 70 to 90 per cent and to ensure everyone left their teens with a post-school qualification.

The commitments have been made at a meeting of Labor state and territory premiers and
opposition leaders in Burnie, in northwestern Tasmania, aimed at focusing on ways to revitalise
regional Australia.

The Labor leaders pledged to work together to improve service delivery to rural Australia,
in a show of unity which is sure to raise the stakes in the bush vote.

AAP RTV dw/ss/dmc/rp

KEYWORD: TAX (BURNIE)

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