The higher-tax proposal experts say could 'secure' Australia's future
News Source
β’Sun, 18 Oct 2026 18:34:54 +0000
π° What Happened
The Grattan Institute has proposed raising the GST from 10 to 15 per cent and applying it to all food. The think tank says this would raise about $76 billion a year. It wants $58 billion of that spent on income tax cuts and higher welfare payments.
Under the plan, JobSeeker and Youth Allowance would rise 20 per cent, rent assistance 50 per cent, and the parenting payment 20 per cent. Pensions would go up about 8 per cent. The rest would go to the states.
The report says most households would pay a little more tax.
π The Backstory
The GST started in July 2000 under John Howard and has never gone up. Government debt is now very high, and costs are rising with an ageing population and climate change.
Similar ideas have failed before. Independent MP Kate Chaney put forward a 5 per cent rise in 2025. The Greens called it lazy. The Prime Minister says Labor has not looked at a GST increase, and the change is a political no-go zone.
π― Why It Matters
A low-income single parent who rents could be about $150 a week better off. A higher-income working family could pay $162 a week more.
The Grattan Institute has proposed raising the GST from 10 to 15 per cent and applying it to all food. The think tank says this would raise about $76 billion a year. It wants $58 billion of that spent on income tax cuts and higher welfare payments.
Under the plan, JobSeeker and Youth Allowance would rise 20 per cent, rent assistance 50 per cent, and the parenting payment 20 per cent. Pensions would go up about 8 per cent. The rest would go to the states.
The report says most households would pay a little more tax.
The GST started in July 2000 under John Howard and has never gone up. Government debt is now very high, and costs are rising with an ageing population and climate change.
Similar ideas have failed before. Independent MP Kate Chaney put forward a 5 per cent rise in 2025. The Greens called it lazy. The Prime Minister says Labor has not looked at a GST increase, and the change is a political no-go zone.
A low-income single parent who rents could be about $150 a week better off. A higher-income working family could pay $162 a week more.