GST rate rise helped in NZ: deputy PM

New Zealand's deputy prime minister says raising the GST rate helped his country, as Australia debates the future of the GST.

New Zealand's deputy prime minister says raising the GST rate helped his country's economy. (AAP)

As Australia grapples with possible changes to its GST, New Zealand's deputy prime minister says raising the tax rate helped his country's economy.

Increasing the rate to 15 per cent in 2010 meant personal income and company tax rates could be reduced, Bill English told ABC radio on Friday.

The rate increase was discussed publicly for about 18 months so that by the time it was implemented it wasn't that controversial, he said.