At least 2 families are happy with the budget. Yazit, the general worker with a family income of $800 pm will receive $250 GST cash voucher and $260 utility rebates. He is happy that he could now give his primary one son a bit more as pocket money.
Gina Loo, a part time administrative assistant earning $500 pm, also a sole breadwinner, with a daughter and parents to look after, will get $250 for each adult and a $260 utility rebate. Incidentally, Yazit’s wife is not a citizen and will not receive the GST voucher.
Both families are happy with every dollar they received. It is amazing how they coped with the kind of cost of living in our world class city. But they are managing and can still put on a warm smile for the reporters. Their stories are in the ST today.
The GST voucher is to help the lower income families offset the GST that they have been made to pay as the GST knife is pretty blunt, and does not care if one is a multi millionaire or with a few hundred bucks as household income. The examples given in the ST, a retiree couple will receive enough, $1,240 to offset an estimated GST of $840, with some to spare. A ‘younger lower income households with no elderly members…will also receive a significant GST offset…It should cover about half of the total GST they pay each year.’ This means that they will have to pay the other half of the GST tax despite the significant offset.
Some jokers are still arguing angrily that the poor are not taxed. This is a good example of the unpleasant truth. How could a rich country, with so much in reserves, tax on the very poor? And best, claiming that the GST is to help them.
Well, at least the very poor are still happy that the $250 cash voucher will better their lifestyle for a few months, until the next budget comes.