Treasurer Scott Morrison says a plan to slash company tax and hike the GST to 15 per cent demonstrates how changing the tax mix could grow the economy.
The plan presented to the prime minister's advisers by the Financial Services Council suggests slashing the company tax rate to 22 cents in the dollar while hiking the GST to 15 per cent, and extending it to fresh food, education and health care.
The $36.8 billion raised could then be returned through income tax cuts for workers and annual payments to the vulnerable, such as pensioners.
Mr Morrison says the plan demonstrates that "you can change the tax mix and grow the economy".
"The goal here of growing the economy, the goal here of growing jobs, can be achieved, at least as that presentation demonstrates, by changing the tax mix," he told Sky News on Monday.
"The thing you have to do is get the income tax monkey off people's back."
But Mr Morrison insists any change to the tax mix would be put to voters at the next federal election.
"The ultimate arbiter on these things is the Australian people."
Opposition Leader Bill Shorten said the GST was a "lazy tax" and there were better ideas out there.
"It's just a very poor idea and Labor's not having a bar of it," he told reporters in Melbourne.
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