New figures highlight the challenge facing Treasurer Joe Hockey in his quest to repair the budget - a slowing economy and weak demand for workers.
The Westpac-Melbourne Institute leading index - an indicator of the likely pace of growth three to nine months into the future - points to sluggish economic growth well into 2015.
Also released on Wednesday, the Department of Employment's monthly vacancy index - a gauge of the number of online job advertisements - fell in November.
They come in a week when Mr Hockey predicted in his budget update that the unemployment rate would rise further to 6.5 per cent by mid-2015.
The jobless rate was 6.3 per cent in November.
Falling tax revenue and a drop in commodity prices were key factors behind a rapid deterioration in the budget since May.
Organisation for Economic Cooperation and Development senior economist Philip Hemmings says the downside risks for the economy have become a reality with the decline in commodity prices.
"It is the speed and depth that is catching people out," he told AAP.
And the main risk is more of the same in the coming year, which raises the possibility of an interest rate cut.
Mr Hemmings was commenting on the OECD's biennial economic survey of Australia, which contains a number of recommendations to help smooth the economy's transition from mining investment.
The Paris-based institution believes it would make "sound economic sense" to make better use of the GST.
The annual cost of GST exemptions on fresh food, healthcare, education and financial products is estimated to be $20 billion.
The GST rate of 10 per cent is also low by international standards.
Opposition Leader Bill Shorten is not impressed.
"If (Prime Minster) Tony Abbott wants to increase the GST, he should take it to an election," he told reporters.
Finance Minister Mathias Cormann remains committed to an election promise that there would not be any changes to the GST in the first term of government "full stop, end of story".
But the Abbott government is about to review the tax system to help build a stronger economy.
Australian Chamber of Commerce and Industry director John Osborn agrees that improving the tax mix would improve efficiency.
"If adjusting the GST makes that possible, then we should be considering it," he said.
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