Make electricity GST-free, senator urges

Liberal Democrats senator David Leyonhjelm says making electricity bills GST-free would save a typical household about $200 a year.

Senator David Leyonhjelm is calling on the government to make energy bills GST-free. (AAP)

A Senate crossbencher is calling for GST to be removed from electricity bills to save households about $200 a year.

Liberal Democrat David Leyonhjelm queries why water is GST-free but electricity is not, despite both being essential household services.

"Electricity bills are horrendous and getting worse, " he told reporters in Canberra on Wednesday.