Labor says cabinet part of GST campaign

Cabinet minister Andrew Robb has added fuel to the debate about broadening the base of the GST.

Federal Labor has seized on the comments of a cabinet minister to bolster its argument the Abbott government is planning changes to the GST.

Trade Minister Andrew Robb has said there is general agreement that broadening the base of the GST is better, just like lower personal income tax is better.

He criticised the singular focus on the GST, arguing the tax system had to be looked at holistically.

"I think to pick out one tax at this stage and suggest all the problems in the world will be solved is I think ... highly inappropriate," he told The Australian Financial Review on Friday.

Labor's junior treasury spokesman, Andrew Leigh, said Mr Robb was outing himself as the ring leader of the campaign within the government to change the GST.

"Australians now know the Liberal Party's campaign to increase the GST goes right to the cabinet table," he said in Canberra.

Mr Robb's comments follow earlier remarks by government backbenchers Dan Tehan, Dean Smith and Ian Macdonald, all advocating a broadening of the GST base.

Fresh food, health care, education expenses and overseas online purchases of less than $1000 are exempt from the 10 per cent impost.

Dr Leigh suggested the opposition might consider lifting the exemption on overseas online purchases, a measure Labor considered while in government.

Prime Minister Tony Abbott is standing by a commitment not to make any changes to the GST during the first term of his government.

"The short answer is no," he told Macquarie Radio when asked whether Mr Robb's comments indicated a change was being planned.

"Lots of people can argue a point about how our tax system might work better and good luck to them if they want to put that perspective forward," he added.

Victorian Premier Daniel Andrews has slammed Mr Robb for his "quite unbelievable comments", telling reporters that he will not support taxing food or jacking up the GST rate in his state.

"The GST is not a fair tax, because it has no regard for a person's capacity to pay," Mr Andrews said on Friday.

"The notion of putting this on food, I reject that and I will never support it.

"The notion of jacking up the GST rate, again I won't support that either."


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Source: AAP


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