Greens and Liberals reject GST hike plan to fund tax cuts
The Grattan Institute proposed raising GST to 15%. ACT Greens and Liberals both oppose the plan.
The Grattan Institute says Australia should broaden the GST and lift it to 15 per cent, using the extra revenue to cut personal income taxes for low and middle-income earners and boost welfare payments.
ACT Greens leader Jo Clay called it regressive and said the focus should be taxing wealth, profits and polluters instead. ACT shadow treasurer Ed Cocks said tax revenue would grow more than 44 per cent over five years and argued more taxes during a cost of living crisis would hurt households struggling to cope.
Treasurer Chris Steel welcomed the discussion but warned any changes must protect household budgets and not add pressure on living costs.
- 15 per cent
- Proposed GST rate
- 10 per cent
- Current GST rate
- 76 billion dollars
- Projected annual revenue
- 58 billion dollars
- Income tax cuts funded
Why it mattersHow Australia taxes and spends affects household budgets and cost of living pressure during economic strain.
AustraliaACT households could see changes to everyday shopping costs and income tax depending on federal tax policy.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
Open this story in InSnip →
