The head of private health insurer nib has backed Prime Minister Tony Abbott's call for business to play a greater role in pushing for economic reform.
Mr Abbott has issued a plea for business leaders to help promote the need for economic reform.
The chief executive of nib, Mark Fitzgibbon, on Wednesday agreed the business community could do more to support major economic reforms.
He said business leaders often spoke up on government policies that directly effected their operations but were hesitant to speak on broader issues.
"I'd agree that business generally needs to stand up and declare its hand more on policy reform,especially as it relates to tax," he told AAP.
Mr Abbott has sparked a renewed bout of speculation about a possible rise in the GST as part of a debate about the state of the federation and how it should be better structured.
Mr Fitzgibbon said businesses should be willing to get involved in debates over tax reform and the possibility of increasing the GST.
"They are hard yard discussions around increasing GST no matter how logical and faire the proposition is, and it probably is incumbent on business to be more supportive of sensible policy reform," he said.
He said consumption taxes like the GST should play a greater role in Australia's tax system.
"As a society we need to start taxing consumption more, rather than income because a tax on income creates a disincentive," he said.
"GST is a more effective way of preventing tax avoidance and making sure those with the most money to spend make a larger contribution."
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