Prime Minister Malcolm Turnbull has set out three aims for the government's tax reform plans.
"Firstly, they have to drive growth and jobs," he told parliament on Thursday.
"Secondly, they have to be fair. And thirdly, the complexity associated with them has to be justified in terms of a productivity output."
Mr Turnbull said compensating for a rise in the GST would need to go further than cutting income tax for workers.
People on welfare payments would need to be "fully compensated" and ways would need to be found to buffer part-pensioners and self-funded retirees.
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