Morrison cautious on 15pct GST proposal

SCOTT Morrison has flagged “pretty significant” tax changes but won’t specifically back a proposal to hike the GST to 15 per cent.

The Hon. Scott Morrison. Lakemba Mosque held an open day to the public.

TREASURER Scott Morrison has flagged “pretty significant” tax changes but won’t specifically back a proposal to hike the GST to 15 per cent.

However, Mr Morrison praised Nationals MP David Gillespie for asking the Parliamentary Budget Office to cost a New Zealand-style model that would extend the consumption tax to more goods and services.

The office found it would generate an extra $65.6 billion for a total take of more than $130 billion in 2017/18.

Dr Gillespie insists he isn’t advocating a “tax grab” to boost federal coffers.

Instead he wants the extra revenue to fund income and small business tax cuts and infrastructure projects.

Mr Morrison thanked the MP for his work on the proposal.

“This is a good contribution,” he said, but noted it wasn’t government or Nationals policy.

The treasurer reiterated everything was on the table during what he labelled a “discovery phase” with the states and territories. “If you are going to change the tax system then you need to go and engage I think in some pretty significant change because that is the only way you can get the outcomes that people would want,” Mr Morrison told ABC radio.

Former PM Tony Abbott and Dr David Gillespie.

He criticised Opposition Leader Bill Shorten for locking himself out of a very important national discussion.

But the Labor leader took aim at Dr Gillespie’s idea saying there were other ways to raise revenue.

“The people who pay this are the people who are going to work everyday and battling to make ends meet,” he said.

“I don’t believe that reform in this country should have to be paid for by people paying extra in their GST.” Deputy Liberal leader Julie Bishop said the government was still considering its options and suggestions of a GST hike from the current 10 per cent at this stage was “speculative”.

“What we want to do is have lower, simpler fairer taxes, so we are having a very constructive discussion with the states and we are putting all options on the table,” she told the Nine Network.

Ms Bishop also dismissed speculation the tax rate for people earning $100,000 a year would be cut by nearly a third to compensate for a 15 per cent GST.