GST hike could raise extra $65 billion

money

The federal government could more than double its revenue if it increased the GST to 15 per cent and broadened the tax base, according to new modelling.

The Parliamentary Budget Office found that changing the GST to a New Zealand-style model would generate an extra $65.6 billion in revenue in 2017-18 to a total of more than $130 billion.


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Deputy Liberal leader Julie Bishop says the government is still considering its taxation options and any suggestion of a GST hike at this stage is just speculation.

Ms Bishop told the Nine Network the government wants lower, simpler, fairer taxes, and is holding constructive discussion with the states and putting all options on the table.

She also dismissed as speculation a report in The Australian that 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.

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