Illawarra charities fear their already stretched resources will be overwhelmed if the GST is applied to fresh produce.
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The Illawarra Homeless Hub and Anglicare expressed their concerns after Liberal MP Dan Tehan urged the government to apply the tax to fresh food.
The backbencher confirmed the Coalition had included GST reform in its tax white paper due before the 2016 election, sparking speculation the GST could become an election issue.
Wollongong Homeless Hub manager Julie Mitchell said she was concerned about the effects an extended tax would have on her clients.
‘‘What happens when people are homeless is that buying fresh produce is the first thing to go,’’ she said.
‘‘People are going to go for the non-perishable canned goods instead of fresh goods to keep costs down.
‘‘We know we have to eat five serves of fruit and veg a day and this is taking it beyond the reach of people doing it tough.’’
Ms Mitchell called the policy ‘‘short-term thinking’’ which would create more pressure on at-capacity charity and health services.
‘‘It’s going to affect long-term health, people in difficult situations already have difficult health issues with poor nutrition; it’s just craziness and a further strain on the health system,’’ she said.
‘‘It’s very short-term thinking and I’m appalled at the idea of it putting strain on services assisting low income families.’’
Anglicare spokesperson Janine Jones said services providing fresh produce to struggling families were already strained.
‘‘We have fresh food Tuesday and Thursday at some emergency relief centres where we help a lot of people and we don’t want to see any more come through our doors because they can’t afford fruit and vegetables,’’ she said.
Member for Throsby Stephen Jones criticised suggestions the GST base should be broadened.
‘The government is turning out the backbench to breach an election promise; they’ve given tax cuts to the wealthiest Australians and at the same time they’re planning tax increases on everyday essential items,’’ he said.
‘‘The farms throughout the Illawarra and Southern Highlands are getting squeezed by big supermarket and they’re are rightly concerned about the plan to increase the price of food.’’