New figures may show how consumers are reacting to the on-off debate over increasing the GST under the Turnbull government's tax reform process.
The weekly ANZ-Roy Morgan consumer confidence gauge, due on Tuesday, has been in decline since the beginning of the year against the backdrop of an uncertain outlook for the global economy and volatile financial markets.
The debate over a possible increase in the GST from 10 per cent to 15 per cent has also been seen by economists as harming confidence.
Prime Minister Malcolm Turnbull appeared to walk away from endorsing a GST increase at the weekend, saying he was yet to be convinced it was the way to go to fund income tax cuts and lift economic growth.
But neither he nor Treasurer Scott Morrison has been willing to rule out pursuing an increase since, saying all options are still being considered.
Westpac will release its monthly consumer confidence survey on Wednesday, while National Australia Bank will also issue its monthly business survey on Tuesday.
"In view of ongoing financial market volatility and heightened talk of an increase to the goods and services tax, chances are that both the Westpac and NAB measures ... will take a tumble this week," BetaShares chief economist David Bassanese said.
The departments of finance and treasury are likely to be quizzed on how far the government has gone down the path of considering an increase in the GST when they face senators in hearings on Tuesday and Wednesday.
Share
