DUTTON DISASTER ON GST-FREE POWER

22 August 2018

Liberal Party infighting and introspection moved into its next phase today with SloMo attacking Peter Dutton for his $32 billion GST-free electricity idea as being a budget blower, an absolute budget blower.

You know youre an economic illiterate when even economic dunce Scott Morrison manages to lay a blow on your chin for this crazy GST-free power thought bubble.

Its a crazy and dangerous idea particularly as it comes from the man challenging Malcolm Turnbull for the Prime Ministership right now. This could be Government policy within days.

This idea would be a budget blower, for states and territories trying to run schools and hospitals. Taking $32 billion out of the GST revenue pool would also scuttle any deal to move to a new GST distribution model.

The only other way through would be the Liberal Party jacking up taxes by $32 billion elsewhere to pay for the GST exemption.

Mr Morrisons intervention is an important one: it would be very difficult for Mr Morrison to serve as Treasurer in the Dutton Government given they are at odds on such a key policy.

It is one thing for Mr Turnbull and Mr Dutton to be at war. When they weaponise dumb policy ideas as part of their power struggle, it is the country which pays the price.