THE NEWS WRAP: GST food exemption has proven costly: Former PM Howard

The decision to exempt food from GST has cost the Federal Government billions of dollars since 2000, according to former prime minister John Howard.

According to The Australian Financial Review, Howard said that the decision, pushed for by the then-opposition Labor Party, now costs up to $9 billion. The comments follow a call by the Business Council of Australia for a review of the GST system.

Business group savages Labor over IR

The Federal Government has failed to give employers a “fair go” on workplace relations and has been too close to unions over the issue, the Australian Industry Group has claimed.

The Australian reports that the lobby group’s chief executive Innes Willox is set to deliver a speech that will lambast the government for failing to support businesses.

He will say: “Business owners and managers are resilient and up for a challenge, but if things are made too difficult through ill-conceived legislative and other changes the inevitable result will be more business closures, more offshoring and less Australian jobs.”

Myer CEO plays Christmas retail Grinch

Encouraging results posted by Myer have not been enough for the retail giant’s CEO to feel more optimistic about Christmas.

Bernie Brookes said that he expects a flat festive trading period, saying that the average Australian consumer is “reasonably fragile and we can’t afford to be too buoyant.”

Brookes was speaking after Myer revealed a 1% quarterly rise in sales.

Overnight

The Dow Jones Industrial Average was down 43.96 points, or 0.35%, to 12,526.99. The Australian dollar moved down to US103.14 cents.