Grattan Institute calls for GST rise to 15 per cent to fund tax cuts
Summarised from 2 outlets · 3 reports · Updated 19 Oct, 02:01 · Archive
The Grattan Institute has called for Australia's GST to rise from 10 to 15 per cent and expand to cover fresh food.
The Grattan Institute has called for Australia's GST to be raised from 10 to 15 per cent and expanded to cover fresh food items that are currently exempt, including fruit, vegetables, bread and milk. The institute estimates this would raise $76 billion annually.
Of the additional revenue, $58 billion would be spent on cutting income taxes for low and middle-income earners and boosting welfare payments. The plan includes a 20 per cent increase in JobSeeker and Youth Allowance, a 50 per cent rise in Rent Assistance, a 20 per cent increase in the Parenting Payment and an 8 per cent rise in the Age Pension. The remaining funds would go to state governments to repair their budgets and cut inefficient taxes like stamp duty.
Grattan Institute chief executive Aruna Sathanapally said there was no easy path back to budget sustainability. She noted that outside the Covid pandemic, the last time Australian governments owed as much money, the country was still paying off debt from a world war. The call comes as Australian government debt sits at nearly $1 trillion alongside rising budget pressures.
How it is being reported
- Grattan Institute calls to lift GST to 15 per centCalls to lift the GST have resurfaced, as high levels of debt, funding commitments and an overreliance on income taxes are hurting the nation.The West Australian · 19 Oct, 01:29
- Grattan Institute calls to lift GST to 15 per centCalls to lift the GST have resurfaced, as high levels of debt, funding commitments and an overreliance on income taxes are hurting the nation.Perth Now · 19 Oct, 01:29
- Grattan Institute think tank calls for GST to be raised to 15 per cent to fund income tax reliefA think tank leader - who sits on a Federal Government expert panel that costs the policies of the Opposition and minor parties - has called for the GST to be increased.The West Australian · 19 Oct, 00:42
In this story: Grattan Institute · Aruna Sathanapally · Australia · New Zealand
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