When the Howard Government navigated his GST reform package through the Senate at the turn-of-the-century, it was forced by the Democrats to exempt fresh food, health and education in a bid to protect lower income earners from the GST’s regressive impacts.
However, according to Crispin Hull, these exemptions have created perverse impacts, with higher-income earners benefiting disproportionally:
Go to any supermarket and see what the well-dressed obviously wealthy people put in their trolleys: fresh food and finest cuts of meat and fish, all GST exempt. See what the poorly dressed obviously time-stressed struggling people with kids in tow put in their trolleys: processed frozen TV meals, sugary drinks, all attracting the GST.
