Abbott says no to GST change, again

Prime Minister Tony Abbott has played down talk within his own government about the need to broaden the GST base.

Tony Abbott has again vowed there will be no changes to the GST before the next federal election.

The prime minister was responding to talk within his government about the need to broaden the base of the GST, which now exempts fresh food, healthcare, education expenses and overseas online purchases of less than $1000.

"I don't mind people debating the GST and I certainly don't mind members of parliament discussing the GST," Mr Abbott said from the United Arab Emirates where he is on an unannounced visit to the region.

"But the GST simply can't change unless all of the states and territories agree and there is a political consensus in the parliament."

In any event, and despite the government undertaking a strategic review of Australia's tax system in 2015, the government won't be initiating any changes to the GST before it seeks a second term.

Liberal backbencher Dan Tehan is leading the charge for minimal exemptions to the GST, arguing broadening the tax base would deliver up to $21.6 billion in extra revenue annually.

The MP wants Australia to take a leaf out of New Zealand's tax book.

There its GST covered 96 per cent of consumption while Australia's only covered 47 per cent and is shrinking, down from 53 per cent a decade ago, he said.


Share

2 min read

Published

Updated

Source: AAP



Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world