Senator Ian Macdonald says he would vote against any increases to the GST

A LIBERAL senator has vowed to oppose any increase to the GST, saying the Howard Government “swore in blood” the tax wouldn’t exceed 10 per cent.

08 jul 1997 LOCAL MP PETER LINDSAY, PM JOHN HOWARD AND SENATOR IAN MACDONALD ARRIVE IN TOWNSVILLE to demonstrators PROTESTIN...

LIBERAL Party backbencher Ian Macdonald has vowed to oppose any increase to the GST, saying as a member of the Howard Government he “swore in blood” the tax wouldn’t exceed 10 per cent.

The Queensland Senator said he supports broadening the GST, but “certainly would not be voting for any increase”.

“I was around when this GST proposal was originally introduced and at the time I and everyone around from the Prime Minister down promised that it would never go beyond 10 per cent,” he told ABC News Radio.

“We all swore in blood that it would not; that it would remain at 10 per cent and that’s a commitment that I as one of them who gave it intend to honour.”

‘Swore in blood’ ... Senator Macdonald, right, was a member of the Howard Government that introduced the goods and services tax in July 2000. He is pictured here with the former prime minister in 1997.

The Goods and Services Tax was introduced by the Howard Government in July 2000.

Speculation the tax could be broadened to apply to some goods and services that are currently exempt, including fresh food, health and education, has been widespread since Prime Minister Malcolm Turnbull confirmed all tax reform options were “on the table”.

Senator Macdonald said he couldn’t recall whether or not GST applied to health and education under the original Howard Government proposal, but he wanted “whatever we took to the people at that time” to be adopted now.

“As history shows we had to compromise to get that financial reform though the senate at the time, but it still did interfere with the original proposal that the people of Australia adopted by electing us at that election,” he said.

“I want the GST proposal that our government took to the people and was elected on that promise and that was a broad based GST without exemptions

“My recollection is that it covered everything at the time, but … what I’m saying is whatever we took to the people at that time is what should be adopted now and it would allow for addition money for the states.”