
MEDIA RELEASE: Electricity is essential, not a luxury
Liberal Democrats Senator David Leyonhjelm is calling on the Federal Government to remove the GST from electricity to immediately alleviate the pain of rising prices.
“Electricity is an essential service like water, yet water is GST-free but electricity isn’t,” Senator Leyonhjelm said.
“Electricity bills are horrendous and getting worse, rising by an average 8 per cent each year.
But costs are at least 10 per cent higher than they need to be, just because of the GST.
“Making electricity GST-free would immediately save a typical household about $200 each year.”
Households are facing a 20 per cent hike in electricity bills this quarter, with a typical annual bill increasing from around $2,000 to $2,400.
“That’s $400 many households simply cannot afford,” Senator Leyonhjelm said.
“In fact, a lot of low-income households report they are going without heating this winter because of electricity prices. This is sure to cause deaths, a scandalous situation in any first-world country but unforgivable in a country so rich in resources.”
Although the revenue is passed on to the states, the GST is a federal tax.
“Making electricity GST-free would not need the support of the states, which are addicted to GST revenue and rake in the dough with every electricity price rise.”
The revenue losses would be shared between state governments, and each state’s budget would continue to be in a healthier position than the federal government’s budget.
“More importantly, the people of each state would face dramatically lower electricity bills,” Senator Leyonhjelm said.
“If the Federal Government doesn’t budge now, it will be a key issue on which the Liberal Democrats will campaign at election time.”
Media: Kelly Burke 0408 734 586

