GST FOOD FEARS

REMOVING the Goods and Services Tax (GST) exemption on fresh food could see locals struggle to pay, according to community workers.

They said applying the GST to fresh food would be an attack on struggling families, who spend much of their food budget on foods that are currently exempt from the tax.

Nowra’s Waminda health worker Hayley Longbottom said removing the tax would only add extra costs to already struggling families.

“The government needs to consider the obesity epidemic,” she said.

“It will seem cheaper to get processed foods over fresh food.

“It costs enough already feeding a family, let alone extended family, especially for single mothers.”

Ms Longbottom said it was unfortunate the government would consider removing the exemption after promises to work on closing the gap for low socioeconomic demographics across the nation.

“It’s not going to encourage people to choose a healthier lifestyle either, which will put added pressure on our health care system. We will see our people get a lot sicker and a rise in chronic illnesses.

“It’s appalling really. It just doesn’t make sense.”

Ms Longbottom said if people became desperate to feed themselves and their families as a result of the unaffordable price of food, there may be a spike in crime rates as well.

Nowra and Bomaderry Community Food Store manager Helen Esdaile said she has no doubts that if the exemption on fresh food was to go, they would see a spike in the people visiting the stores for donated goods.

“Of course I would expect that this would affect low socioeconomic, low income families,” she said.

“It’s going to mean more and more people will need to come through our stores and I’m grateful that we have our stores available for the needy who live within our community.

“The amount of people who rely on our store each month probably sits around the 2000 mark and this is a quiet period.”

Mrs Esdaile said $1000 worth of food was stocked each month for those in need.

“We do supply fresh fruit and vegetables, but we can’t supply enough to meet the demand and that demand would increase if the tax were to be put on fresh food.

“I really do feel the tax on fresh fruit and vegetables is really going to be a challenge for low income people, who will be less inclined to purchase it and that will lead to less healthy diets and result in things like nutritional deficiencies.”

Public Health Association of Australia president Professor Heather Yeatman highlighted Australian Bureau of Statistics data showing the households in the lowest 20 per cent of incomes spend the lowest proportion of their food budget on fast food and meals out, which attract GST.

“This means that not only will they be more affected by a change in the GST on basic foods because of their lower income, but also because it is where most of their food dollar is currently spent,” she said.

“We need incentives to eat health food – not disincentives.”

The GST will be examined as part of the federal government’s taxation white paper, which is due to be launched this month.