The current system is messy, but I think the alternative is equally problematic. Sorry if I misread your intentions, but from what I saw you were spruiking the type of model that mindless right-wingers favor. I saw only a passing reference to the tax free threshold, which wouldn't be adequate for those caught in the middle - ie: where a large proportion of the Australian population lie.Ummmmm, no.
I think our current system is waaaaaay too complicated, and allows businesses and high income earners to avoid paying appropriate tax. A GST is much harder to avoid. Spend more, pay more.
And did I say anywhere I was against rebates or benefits for low income earners ? No?
Be careful about the assumptions you make.
For the record, my tendency is towards the higher taxation/higher service provision model of several scandinavian countries.
Rebates and benefits work in theory but are difficult in practice. I'm bickering with Kevin (no abortions) Andrews around income testing for access to benefits right now. These benefits, rebates, allowances etc are far more vulnerable to changes in government, as we are witnessing with the productivity commission recommending dramatic changes to delivery of essential services.
And the GST clearly impacts low-income earners more than anybody else. It is dangerous to consider lifting it during a time where penalty rates and fundamental industrial protections are under fire. I am not against lifting the GST in theory, but I just know how impossible it would be to implement the necessary social policy changes effectively. I sense any dramatic changes in this area right now would suffer from the governments prevailing ideological war. It could definitely work if we had strong leadership and independent thinkers, but it isn't going to work with puppets for various conservative lobbyists at the helm.