A new Queensland coalition senator says the GST should be raised from 10 per cent to 15 per cent and cover everything.
A new coalition senator says the GST should be raised to 15 per cent – and cover all goods and services.
Queensland Liberal National Party senator James McGrath said in his first speech on Wednesday that Australia needed a tax system that was “simple, clear and transparent”.
“Taxes on jobs and productivity such as the payroll tax and company tax must be abolished and reduced respectively,” Senator McGrath said.
“To cover the states for the loss of income from payroll tax, the GST should be broadened to cover everything.
“The GST should be increased to 15 per cent.”
He said there should be compensation for the less well-off.
The GST has a number of exemptions including basic food and education.
The former coalition strategist, whose speech was watched by most of the Abbott cabinet, also called for a proportion of income tax to go to the states with “those states that push growth to be doubly rewarded with more jobs and revenue”.
The government has promised a white paper on taxation reform this term, but says any changes would be taken to the next election for voter endorsement.