GST changes to be debated

tax, GSTTreasurer Joe Hockey insists there will be no changes to the GST without community and political support.

“We will prosecute a case for change in various areas for tax but ultimately we need to get to a policy outcome,” he told ABC radio on Monday when asked about a possible change in the rate and scope of the GST.

The government is kick starting a broad ranging debate on tax reform with the release of a discussion paper ahead of a white paper later in the year.

Labor immediately ruled out support for increasing the GST rate from 10 per cent or broadening the base to include fresh food, health and education.

“It’s lazy just to say the only tax reform worth doing is increasing the GST or broadening the base,” shadow treasurer, Chris Bowen, said.

Accounting bodies say fear must not cloud the need for a debate around the rate and base of the GST.

CPA Australia says the GST must be considered in any reform of the tax system.

“It’s not the entire debate, but it’s a big part and it must not be allowed to become a distraction,” CEO, Alex Malley, said adding more GST revenue could be used to scrap inefficient state taxes and provide for personal income tax cuts.
AAP

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