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This assault forced Hewson into a partial backdown, agreeing not to levy the GST on food. However, this concession opened him to charges of weakness and inconsistency, and it also complicated the arithmetic of the taxes and benefits package by reducing the scope for the tax cuts, which were the most
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The following day, Keating paid a televised visit to a bakery, but the owner told him that although he disliked the proposed GST, taxes under the Labor government already had an adverse effect on his business. Keating appeared surprised that the owner paid both payroll and wholesale sales tax. The
213:, in which Hewson was unable to answer a seemingly straightforward question about whether a birthday cake would cost more or less under a Coalition government. He instead made a series of conditional responses about whether the cake would be decorated, have candles on it, and so on.
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attractive elements of the package for middle-class voters. A particular problem was coming up with a precise legal definition for 'food'. The complications of the new package were demonstrated in the interview with Mike
Willessee on 3 March 1993 on the
166:(GST), to be balanced by abolition of a range of other taxes such as sales tax, deep cuts in income tax for the middle and upper-middle classes, and increases in pensions and benefits to compensate the poor for the rise in prices flowing from the GST.
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However, Hewson was defeated. The birthday cake interview was widely seen as crucial in the loss of what many of his supporters had called an "unloseable election", making his tax proposal seem too complicated and Hewson himself ignorant about it.
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Hewson: "...If it is a cake shop, a cake from a cake shop that has sales tax, and it's decorated and has candles as you say, that attracts sales tax, then of course we scrap the sales tax, before the GST is..."
266:. Upon being shown footage of the birthday cake interview, Hewson commented, "Well I answered the question honestly. The answer's actually right. That doesn't count... I should have told him to get stuffed!"
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dominance in federal politics. The package included new social structures, industrial reforms and radical economic policies. One of its key elements was the introduction of a
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in that it shifted the tax burden from direct taxation of the wealthy to indirect taxation of the mass of consumers. He famously described Hewson as a "feral abacus".
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Through 1992, Keating mounted a campaign against the
Fightback! package and, particularly, against the GST, which he described as an attack on the
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Coalition led by Hewson continued to be favoured to win the election on 13 March, with polls until election day predicting a
Coalition victory.
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would cost more or less under his proposed tax reforms. It is remembered as contributing to Hewson's unexpected failure as leader of the
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Willesee: "OK — it's just an example. If the answer to a birthday cake is so complex — you do have a problem with the overall GST?"
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After winning leadership of the
Liberal Party, in November 1991 Hewson launched a comprehensive package of proposed reforms called
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Willesee: "If I buy a birthday cake from a cake shop and GST is in place, do I pay more or less for that birthday cake?"
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in May 1994 and retired from
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After the election
Fightback! was declared dead, and Hewson lost the Liberal leadership to
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was a live interview on
Australian television in March 1993 in which
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campaign (by which time they had been in government for two years).
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were unable to mount an effective response, and in
December 1991,
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Thought to have contributed to Hewson's failure to win the
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successfully challenged Hawke and became prime minister.
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256:conducted an in-depth interview with Hewson on the
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508:. Parliament of Australia. 27 February 1995
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426:"Another over-taxing day for Keating"
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376:"Hot Pies, Cold Pies and Pie-Eaters"
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398:Sakzewski, Emily (1 March 2019) .
317:Quiggan, John (12 December 1992).
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473:Ryall, Jenni (19 February 2014).
584:History of taxation in Australia
445:Wilmoth, Peter (10 April 2004).
319:"Fightback without the Food Tax"
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142:that took place ten days later.
544:. 7 August 2006. Archived from
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574:1993 in Australian television
424:Brough, Jody (5 March 1993).
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447:"The man we knew as Hewson"
345:"Australia's Hard Choice".
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114:birthday cake interview
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355:(7801). 6 March 1993.
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533:Enough Rope
480:News.com.au
263:Enough Rope
162:called the
138:to win the
124:John Hewson
94:John Hewson
60:, Australia
579:Interviews
568:Categories
552:7 December
486:7 December
330:7 December
270:References
181:John Kerin
152:Fightback!
146:Background
130:whether a
70:Fightback!
34:1993-03-03
512:5 January
458:5 January
409:5 January
229:Aftermath
198:Interview
178:Treasurer
174:Bob Hawke
136:Coalition
404:ABC News
260:program
176:and his
50:Location
100:Outcome
32: (
542:ABC TV
258:ABC TV
169:Labor
58:Sydney
65:Cause
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554:2014
514:2021
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