GST rise better than income tax hike: poll

If voters had a choice on how to maintain government services they would prefer a rise in the GST rate to 15 per cent rather than higher income taxes.

Federal Treasurer Scott Morrison

Treasurer Scott Morrison has used an international report to push the case for tax reform. (AAP)

Australians would prefer a GST increase rather than higher income taxes in order to maintain government services - but only just.

The latest Essential Research survey found 27 per cent of respondents would back an increase in the GST compared with 26 per cent who support an increase income tax.

A third didn't know.

If they had to choose, 54 per cent would favour a rise in the GST rate to 15 per cent from 10 per cent rather than expending it to cover food, health and education.

The findings come with the latest Newspoll showing the debate over tax reform and a possible GST increase has not dented support for the Turnbull government.

Treasurer Scott Morrison has taken it as an indication of the electorate's sophistication.

"We understand they're quite capable of allowing Australians to discuss these issues and know just because something is being discussed doesn't mean it's going to be introduced," he said on Tuesday.

Labor frontbencher Brendan O'Connor conceded the government was enjoying a honeymoon period from the relief Tony Abbott was no longer prime minister.

"It will become more obvious for people that Malcolm Turnbull is a lot more talk than action when he seeks to make some decisions," he said.

Opposition Leader Bill Shorten said the prime minister should stop telling people "everything is on the table" and tell them what he plans to do.

"Government isn't like running a dinner party - you owe it to the people who pay your wages to spell out what you're doing," he said.

Mr Morrison defended the time it is taking to come up with concrete proposals for tax reform, citing the experience of the Key government in New Zealand.

"They respected the public by allowing them in the discussion that went for almost a year," he said.

The treasurer said a green paper to be released next year and the May budget would be part of the Australian process.

But he confirmed the government is looking at a proposal by Deloitte Access Economics that would reduce super contributions tax by 15 percentage points from a worker's income tax rate.

It would mean a worker on the top marginal rate would pay 30 per cent tax on contributions, double the rate now.

Shadow treasurer Chris Bowen noted Mr Morrison, as said as social services minister, previously ran a scare campaign against Labor's plan to cut tax concessions for high-income earners.

"This (Deloitte) proposal would affect many more people including middle-income earners," he said.


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Source: AAP


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