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Make electricity GST-free, senator urges

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August 09, 2017

Senator David Leyonhjelm is calling on the government to make energy bills GST-free.

An key Senate crossbencher is calling for GST to be removed from electricity bills to save households about $200 a year, as energy company chiefs prepare to meet with Malcolm Turnbull to discuss rising power prices.

Liberal Democrat David Leyonhjelm has asked why water is GST-free but electricity is not, despite both being "essential" houseshold services.

"Electricity bills are horrendous and getting worse, rising by an average eight per cent each year. But costs are at least 10 per cent higher than they need to be, just because of the GST," he said in a statement on Wednesday

"Making electricity GST-free would immediately save a typical household about $200 each year."

The Turnbull government says households are paying far higher electricity prices than needed because they're not getting the best deals possible.

It blames a lack of transparency by electricity retailers and the difficulty in switching providers.

The prime minister is due to meet with energy company chiefs in Canberra on Wednesday.

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