Earlier, shadow treasurer Chris Bowen demanded Mr Turnbull come clean on his GST plans after Treasurer Scott Morrison flagged “pretty significant” tax changes.
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But federal Labor could end up politically isolated after the next election if it lost and continued to oppose change, amid signs Labor state premiers could shift.
“If you’re someone like Malcolm Turnbull if you want to do something substantial you’ve got to do it quickly and upfront”, Senator Sinodinos told Sky News.
“Any changes to the tax system have to be ones that ensure that there’s no disadvantage to the most vulnerable Australians”, Mr Turnbull told reporters today.
“I’m not advocating just a tax grab”, Gillespie said. “Don’t expect Victoria to stop it”, one said, pointing out that Mr Andrews had, similarly, received a mandate at the last state election to scrap the controversial East-West link and had expected the Abbott government to respect the wishes of voters on that occasion.
Instead, the tax system should encourage growth in the economy which would result in higher government receipts.
Mr Barnett said there was a case for “going further” with the GST, suggesting the exemption on fresh food be removed while retaining exemptions on health and education with refinements.
“At the next meeting of state treasurers we will be looking at what all the state taxes are and what all the options are there”, Morrison said.
“It’s in their best interests to take into account the challenges they have, with health experience, to name one area”, she said.
As well as super, the Premier urged a firmer hand against multinational tax evaders, and placing the GST on financial services, the latter of which would raise up to $4 billion a year.
Mr Weatherill chipped his federal Labor counterparts, saying he had yet to see from them a proposition that would fill the funding gaps facing the states. The Howard government went to the 1998 federal election with a GST proposal in its saddlebags, and only narrowly retained office.
“Our first priority remains addressing the looming fiscal gap faced by all states and the commonwealth over the next 20 years as a result of our growing health funding needs”, she said.
This would be enough to abolish insurance taxes, stamp duty on motor vehicles and 80 per cent of conveyancing stamp duty.
New modelling shows the federal government would more than double its revenue if it increased the GST to 15 per cent and broadened the tax base.
The PBO found it would generate an extra $65.6 billion for a total take of more than $130 billion in 2017-18.
Reiterating previous comments by Prime Minister Malcolm Turnbull, Mr Morrison said all tax reform measures – including raising the GST to 15 per cent – were on the table.
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The extra money would, like the rest, go to the states and territories, and according to Gillespie, pay for income tax cuts and higher pensions and welfare payments.
