THE NEWS WRAP: GST review calls for halving of overseas purchases threshold

The government should halve the $1,000 GST-free threshold for goods bought online, levy GST on packages sent from overseas and redesign its mining tax, according to a long-awaited tax review.

The review, which was not able to recommend a raising or broadening of GST, also said that the government should redesign its mining tax.

However, it did not propose a change to the distribution of GST to the financially weaker states, with one of the report’s authors, former Liberal premier Nick Greiner, saying that Western Australia did not have a “legitimate gripe” that its wealth was being used to support other states.

States wary on Gillard power price plan

State governments are calling for more detail from Prime Minister Julia Gillard before backing her plan to help reduce power bills for consumers and businesses.

Gillard wants to give more funds to the energy regulator and set up new consumer groups to keep prices down, claiming the moves will help reduce bills by $250 a year.

However, several of the Liberal-led states have called on Gillard to release the costings of the proposals, with the NSW state government saying that the abolition of the carbon tax would have a greater impact on energy bills.

Palmer calls for Abbott help in Queensland

Tony Abbott could lose the next federal election unless he brings the Liberal National Party in Queensland into line, mining magnate Clive Palmer has warned.

Palmer, who recently quit the party, said that the LNP has been behaving in a “disgraceful manner” and could impact the federal Coalition unless Abbott intervened.

Markets

The Dow Jones industrial average dropped 14.56 points, or 0.11%, to 13,007.26 on Friday. The Australian dollar was up to 104.37 US cents.