Increasing GST to 15 per cent could raise $130b – report

Increasing GST to 15 per cent could raise $130b – report

New figures from the Parliamentary Budget Office have revealed Australia could raise an $130 billion in tax revenue a year, if the GST was increased to 15 per cent, and the base broadened.

Nationals MP David Gillespie had asked the PBO to model a New Zealand style Goods and Services Tax, following suggestion from his constituents in northern NSW.

Dr Gillespie says in Australia, the GST only covers about 47 per cent of consumption, compared to 97 per cent in New Zealand, where it’s economy is going from strength to strength.

He says  the figures show changes to the GST are worth discussing.

“It’s not part of a coordinated program, I just got off my butt and did this myself, because I want my people in the Lyne electorate to get their voices heard in Canberra,” Dr Gillespie told the ABC’s AM program.

“We should discuss a lot of these issues upfront and centre with the electorate and tell them the options, and tell them what the problems are.”

He says the PBO modelling shows increasing the GST to 15 per cent and broadening its base would raise an extra $65.6 billion in 2017-18, bringing the total revenue close to $130 billion.

It comes as the Federal Government is currently considering a wide range of tax reform, but former Prime Minister Tony Abbott had promised not to increase the GST.

Federal Treasurer Scott Morrison has said in a statement the government is looking for “the best mix of options that are going to encourage jobs growth and economic growth”.

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Libby Dreyer
Libby Dreyer 1729 posts

Libby has worked as a Senior Journalist at National Radio News since February 2011. She graduated with a Bachelor of Journalism from the University of Canberra in December 2010.

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