The GST should be applied to fresh food, health and education: Liberal MP Dan Tehan

A LIBERAL MP appears to have broken ranks by saying the GST needs to be applied to fresh food, health and eduction. But Labor says all is not as it seems.

ONE of Tony Abbott’s MPs has gone public in calling for the federal government to bite the bullet and broaden the GST this year.

Dan Tehan describes the Goods and Services Tax as “unfinished business” and making it apply to fresh food, health and education as “the missing link”.

EARLIER: Tony Abbott calls for "mature debate" on GST with states

Writing in the Financial Review, the Member for Wannon said in 2015 “tax reform is no longer an option for Australia, but a condition for future growth and enhanced competitiveness”.

“This year must begin where the Coalition left off when last in government,” Mr Tehan said.

“We must finish reforming our tax system by broadening the GST.”

But Acting Opposition Leader Tony Bourke said the government was paving the way for changes to the GST.

“Be in no doubt this is not members of Parliament acting alone,” he told reporters in Canberra.

Mr Burke said the leadership of the Liberal party would have known about Mr Tehan’s article.

“This is Tony Abbott preparing the way for changes to the GST.”

Missing Link ... Liberal MP Dan Tehan says the GST is “unfinished business”. Picture: Kate Dowler/News Corp.

The Liberal MP, Mr Tehan, said the breadth of the GST base was “diminished” under John Howard to get the reform through a “hostile Senate”.

“More recently, Labor’s Henry tax review ruled out changes to the GST out of fear of unpopularity in the polls.

“If we can’t handle the task of making our tax system work now, we will hand a bound and broken Australia to our children.”

Mr Tehan cites the public comments of former Prime Minister’s Bob Hawke, Paul Keating and John Howard last week, calling for urgent action on tough reforms, to fix the budget.

“Despite its resounding success in increasing wage growth and competition, the GST remains unfinished business.

“Broadening the GST is the missing link.

“It would deliver up to $21.6 billion in extra revenue each year and enable further serious reductions in direct taxes.”

Rule out ... Catherine King says extending GST to health would slug families about $3 billion a year. Picture: Sarah Marshall/News Corp.

The Coalition has included the GST in its upcoming tax white paper.

Tony Abbott has previously said he wants a “mature debate” on the tax, which he would need the help of the states to reform.

According to Shadow Health Minister Catherine King “extending the GST to health would slug families around $3 billion a year”.

“New Health Minister Sussan Ley must immediately rule out a new GST on hospital visits, going to the doctor and general healthcare,” she said in a statement.