Back in April, Tone Deaf reported on a new proposal by the Federal Government that would see consumers paying more for so-called “intangibles”, items that would include, for example, iTunes downloads of songs and albums, as well as e-books and downloaded movies.

The ‘Netflix Tax’, as it was soon dubbed, was eventually included in the government’s 2015 Budget. As Gizmodo noted, the Netflix Tax isn’t a new tax, but rather an extension of the GST to cover “cross border supplies of digital products and services imported by consumers”.

Basically, the GST would now apply to anything you can download to a tablet, smartphone, or e-book reader. This includes music, movies, e-books, digital magazines, and anything streamed, so readers can now expect a price rise in your Netflix account from 1st July 2017, assuming the relevant legislation is passed.

Well, it looks like things may be about to get even worse. NSW Premier Mike Baird has announced he will soon propose increasing the GST from 10 to 15 percent. If adopted, consumers would see the 15 percent tax applied to music and movies, instead of the originally proposed 10 percent.

In a video statement, Mr Baird said raising the Goods and Services Tax to 15 percent would provide state governments with enough revenue to properly fund the national healthcare system. “As I look at it, it’s quite clear. The best way of dealing with this is to increase the GST,” he says.

“I know that’s not going to be popular, but ultimately, if we do that, we put all the dollars raised into health, into the challenge we face, and you importantly look after those families who need support.” Mr Baird plans on presenting his GST proposal to a tax summit and leader’s retreat on Wednesday.

“This week, as the Premiers and PM gather, I’ll be proposing increasing in the GST to 15% with all the extra revenue going to healthcare and compensating lower income earners so they are no worse off. It won’t be popular. But tough decisions rarely are,” he writes below the clip.

However, NSW Opposition Leader Luke Foley says an increase to the GST is not the right move. “Rather than accepting an increase to the GST, the states should agree on some national uniformity around state taxes – to eliminate competition that decreases revenue for all states,” he wrote on Facebook.

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Speaking to Fairfax, Mr Foley called the Premier’s proposal “lazy”, saying increasing or broadening the GST to include more items, such as fresh food, “would have a disproportionate impact on the people who can afford it least”.

“There’s a lack of leadership from our Premier on this issue. NSW as the largest state in the Commonwealth ought to be leading, not acting as apologists for Mr Abbott’s government,” he told the Sydney Morning Herald.

Like many of you, I’m sick of politics in this country. Petty bickering, sloganeering, chasing the next cheap headline. Our nation has some big problems looming, perhaps the most pressing of which is funding our health system. In 15 years from now, we face a $35 billion funding crises that threatens to end healthcare as we know it. Solving this problem will require more than the usual smear and fear. It will require leadership and ideas.This week, as the Premiers and PM gather, I’ll be proposing increasing in the GST to 15% with all the extra revenue going to healthcare and compensating lower income earners so they are no worse off. It won't be popular. But tough decisions rarely are.My call to our leaders is this: bring a constructive idea to the table. Let’s rise above the usual politics that everyone detests. Let’s solve the big problems that confront this nation. It’s what we’ve been elected to do.

Posted by Mike Baird on Sunday, July 19, 2015

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