Economists Want GST Hiked to 12.5 Percent

Economists Want GST Hiked to 12.5 Percent
A group of friends dine at Yama Gardens in Darlinghurst on May 15, 2020 in Sydney, Australia. Ryan Pierse/Getty Images
AAP
By AAP
Updated:

Increasing the GST to 12.5 percent could raise more than $14 billion a year, new modelling shows.

Consulting firm PwC has also found expanding the consumption tax to five exempt categories - fresh food, health, education, childcare and water and sewage - would raise another $21 billion.

Releasing its modelling on July 7, PwC said tax reform would be critical to recovering from the coronavirus-led economic recession, arguing the GST was ripe for the picking.

Daniel McCulloch in Canberra
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