It was up to the states to do the “heavy lifting” to get “the maximum health bang for the taxpayers’ buck”, he said.
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The prime minister had faced internal unrest over the taxation proposal, with backbenchers in marginal seats concerned that the changes could impact their ability to win back their seats, and has upset Liberals who want lower taxation levels.
“You have to first decide: is this policy going to give you the economic outcome you want?”
The Government says all options are still on the table.
Mr Turnbull probably doesn’t need reminding – earlier this week it was reported he may be risking a backlash from backbench “bedwetters” over the consumption tax hike, which Labor is making every effort to put front and centre in this election year.
Turnbull told News Corp the government would consult with voters before implementing GST reforms.
Senator Macdonald said he felt compelled to honour the promise made by the Howard government when it introduced the GST in 1998.
The prime minister says people may think such a decision had been made because of Opposition Leader Bill Shorten’s scare campaign “through the green grocery aisles of Australia”.
“We know that’s what Malcolm Turnbull and (Treasurer) Scott Morrison really want to do”.
But Cabinet Secretary Arthur Sinodinos warned if the Government decided not to increase the GST then it may be very hard for future governments to tackle the issue.
Federal Nationals MP Michelle Landry became the latest Coalition figure to publicly come out against the idea of a GST rise on Friday.
The Australian Prime Minister says he’s yet to be persuaded that an increase should be part of the tax reform package.
“Part of the reason our backbenchers have been a bit skittish this last week has been because they’ve been seeing what’s in the ether, what’s in the press”, he said.
But the prime minister and the party room have to be “excited about this”.
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Ministers have told the ABC it would be sensible to officially end the debate around the GST soon, but that tax reform would still have to be delivered in the federal budget in May.
