Morrison won't 'rush to failure' on tax

Treasurer Scott Morrison won't be rushing to make changes to the tax system, but he has reiterated the coalition's concerns surrounding bracket creep.

Australian Prime Minister Malcolm Turnbull and Federal Treasurer Scott Morrison (AAP Image/Mick Tsikas) Source: AAP

Treasurer Scott Morrison won't be rushed in his search for a better tax system, but income tax cuts seem very much on the cards.

In a speech to an economic and social reform conference Mr Morrison argued there had been no serious tax changes for 15 years, with other so-called reform having ended in failure.

"We have no intention to rush to failure in this critical area," he told the Melbourne conference on Thursday.

But Mr Morrison warned about the threat of bracket creep - as his predecessor Joe Hockey used to - noting about 300,000 Australians are expected to move into the second-highest tax bracket over the next two years.

"We do want Australians to earn more but I also want them to take home more," he said.

While much of the debate in the past week has centred on the GST, the treasurer noted so far the only public advocates for changing the impost were state governments and former Labor premiers.

"The government has not yet put forward any preferred option or proposal," he said.

Earlier, Prime Minister Malcolm Turnbull told the conference he was open to new ideas for tax reform - but with the "absolutely critical" rider they be fair.

"Any package of reforms which ... is not seen as fair will not and cannot achieve the public support, without which it simply will not succeed," he said.

Shadow treasurer Chris Bowen noted the prime minister couldn't bring himself to utter the letters GST.

Labor doesn't support either increasing the GST rate or broadening its base.

"At the moment we're debating platitudes from Mr Turnbull, thought bubbles from members of his government - backbenchers, frontbenchers all with different plans out there," Mr Bowen told reporters in Melbourne before addressing the conference.

"The one consistent element is they involve increasing the GST."

Independent modelling vindicated Labor's concerns, he said.

The National Centre for Social and Economic Modelling found an increase in the GST rate to 15 per cent would end up with the poorest paying the most, even with a five per cent income tax cut.

But the Australian Council Of Social Services, which commissioned the modelling, says the focus should be on stamp duties and business taxes.

"Fairness and simplicity would be undermined and it would do little or nothing to improve economic efficiency," ACOSS chief Cassandra Goldie said.

ACTU president Ged Kearney says there are many aspects of the tax system that should be looked at before jumping to a GST hike.

"We need a broad approach to tax reform that ensures everyone pays their fair share, we don't need a GST hike, we need a fairer tax system," she said.