Tax compensation part of reforms: Morrison

Treasurer Scott Morrison insists people will be adequately compensated as part of a tax reform package and says a new poll shows they expect that.

Treasurer Scott Morrison believes Australians know that if there is a change to the GST, they will be adequately compensated.

The latest Fairfax-Ipsos poll has found more than half its respondents supported an increase in the GST as long as the poor were compensated, income taxes cut and changes implemented to stop exploitation of superannuation tax breaks by the wealthy.

"People know that when this was done before that there was adequate compensation, if anything, there was over compensation," Mr Morrison told Melbourne's 3AW radio on Tuesday.

Income tax cuts were part of the original GST package back in 2000 under John Howard and Peter Costello and they were the "obvious thing to do" as part of tax reform, he said.

However, the treasurer insists that no decision has been taken to increase the 10 per cent GST rate or broadening its base to possibly take in fresh food.

Senior cabinet minister Christopher Pyne said the opinion poll indicates that Labor has has failed in its efforts to scare voters away from tax reform.

"Labor has manifestly failed in their not-very-scary scare campaign to scare the Australian public away from a debate," Mr Pyne told reporters in Canberra.

What the poll showed was that the public is willing to have a "sophisticated and intelligent" discussion, he said.

But shadow treasurer Chris Bowen played down the poll result, saying there was a long way to go yet in the tax reform debate.

"The government hasn't yet announced their GST plans, when they do I think the Australian people will take a close look and will not be impressed," he told AAP.

Mr Morrison said the tax discussion was heading in a "mature direction" and one that will end up with a "better set of taxes rather than a bigger set of taxes".

A whole range of state and territory taxes will be considered for scrapping as part of reforms to be discussed when Mr Morrison next meets with his state and territory counterparts.

The treasurer cited, as one example, state levies on insurance policies that cost Australians about $6 billion a year.

He said the states and territories will be significant beneficiaries of any change to the tax mix.

"If you want to be a beneficiary you have to be a participant," he said.

The tax debate has done little to dampen the enthusiasm voters appear to have for the Turnbull government.

The poll shows the coalition extending its two-party preferred lead over Labor to 56-44 per cent.


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Source: AAP


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