Income tax cuts in return for lifting the goods and services tax rate to 15 per cent would deliver high-income households an average extra $2140 a year at the expense of lower income and older people, according to economic modelling by Australian National University.

The analysis suggests that a tax mix switch from personal income tax to the GST, as suggested by some independent MPs and tax reform advocates following the Intergenerational Report (IGR), could not be done in a revenue neutral way for the federal government.