Treasurer Josh Frydenberg insists there is no plan to raise the GST after his NSW counterpart backed wide-ranging tax reform to boost the economy.
Former Telstra boss David Thodey has recommended raising the goods and services tax from its rate of 10 percent, or expanding it to include fresh food, education and health.
NSW Treasurer Dominic Perrottet commissioned the review and is making the case to revitalise the economy through tax reform.
Frydenberg said the federal government’s focus was getting people back to work after coronavirus shutdowns.
“We’ve got no plans to increase the GST,” he told Sky News on July 2.
The federal treasurer welcomed the Thodey tax review.
“It’s not the first and it’s not the last report into our tax system,” Frydenberg said.
The GST rate has stayed at 10 percent since coming into place 20 years ago.
But the share of household spending subject to it has fallen from 60.8 percent in 2001/02 to 55.4 percent in 2018/19.
The review also calls for the replacement of stamp duty with broad-based land tax, payroll tax reform and a national road user charge.
