If Australians woke up on Monday believing Malcolm Turnbull had ditched the idea of increasing the GST, they might have ended the day wondering if it had all been a dream.
Neither the prime minister nor Treasurer Scott Morrison ruled it out as part of the government's tax reform agenda, despite having plenty of opportunities to do so on Monday.
The day before, Mr Turnbull had said he had yet to be convinced that raising the GST to make cuts to personal income taxes was the right way to go.
But quizzed on the issue by Labor in parliament, Mr Turnbull said the design of such a move was a question of balance, whether it was fair and provided additional impetus to economic growth.
"I believe that all Australians expect this government to approach this issue not with slogans or with scare campaigns, but with careful analysis," he said.
Mr Morrison also left the door ajar to an increase in the GST from 10 per cent.
"You just don't write things off carelessly and politically," he said.
The treasurer wants to deliver personal tax cuts - if the GST is increased to 15 per cent - rather than use an estimated $30 billion in extra revenue for spending on hospitals and schools, as the states want.
"If that's not possible by that method, we are just going to go the long road," he said.
Mr Morrison also appeared to rule out suggestions the government was considering making changes to negative gearing, saying it provided a real opportunity for middle-income-earning Australians.
Business is unimpressed with how the tax debate is progressing and fears it will be the latest victim of dysfunctional political debate.
Housing and welfare groups though are happy to see a possible GST increase shelved.
The Business Council of Australia warns there is no hope of delivering personal income and corporate tax cuts without a higher GST.
"If the GST is not part of a total tax package, the nation's degrees of freedom to make a real impact on tax relief will be very limited," chief executive Jennifer Westacott said.
Tax consultant Lance Cunningham said there was building frustration that a reform package was not forthcoming.
But the Housing Industry Association said the government was right to be hesitant over increasing the GST because it would be a "big blow" to housing and one of the bright lights of the post-mining boom.
Australian Council of Social Service chief Cassandra Goldie said changing the GST should be the "last resort" of tax reform.
Shadow assistant treasurer Andrew Leigh said Mr Turnbull became prime minister wanting economic leadership.
"But on the core issue on tax reform, he can't articulate a clear plan," he said.
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