Prime Minister Tony Abbott has moved to ease fears from within his own party and the public about a possible hike in the GST.
Mr Abbott wants a "mature debate" about broadening the base or lifting the rate of the GST above 10 per cent to ensure the states and commonwealth can continue to fund public services.
His weekend speech on the future of the federation was immediately attacked by Labor, which accused him of breaking an election promise not to change the GST this term.
Coalition backbenchers have also voiced concerns about a possible voter backlash, particularly with three state elections in Victoria, NSW and Queensland in the next six months.
"I'm keen for the GST to stay exactly as it is," Queensland Liberal MP Andrew Laming said.
Mr Abbott told a coalition party room meeting the government would always put long-term interests ahead of short-term politics.
"Nothing can or will happen unless all of the states want it because it is a tax for the states," Mr Abbott said.
He repeated the line in parliament and turned the attack on Labor, which in government produced modelling on a 12.5 per cent GST.
The modelling showed single-parent families would be around $3900 a year worse off under such an increase.
"There is only one government in recent times that has contemplated an increase in the GST and that's the members opposite," Mr Abbott said.
The prime minister challenged the opposition to release its modelling, arguing Labor could not peddle a scare campaign if they were not prepared to be honest themselves.
Treasurer Joe Hockey said his department had declined to give him the modelling, so he had written to former treasurer Chris Bowen to release it in full.
Mr Bowen said if Mr Abbott wanted a mature discussion he should admit he was breaking an election promise.
"We'll be constructive in the debate but we'll be basing our position around our principles and our principles tell us no increase in the GST, no broadening of the basis is justified," the shadow treasurer said.
Mr Hockey said states were finding it hard to fund hospitals as demand grew, and the government was "prepared to help them down that path".
Pressed on whether this will include changes to the GST, Mr Hockey said it could involve a range of things.
"We've never said for political reasons we're excluding this or excluding that because we know that we have to earn prosperity as a nation. Yes, difficult decisions will be made," he said.
Queensland Premier Campbell Newman said reforming the federation was about more than just the GST.
"The key in Australia right now is for governments to stop waste and inefficiency to better spend the tax revenues they already get."
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