Swan rules out any increase in GST rate

A federal government review of taxation will not consider any increase in the rate of GST, federal Treasurer Wayne Swan says.

The Business Council of Australia, in a submission to the Henry review, has called for a halving of the company tax rate to 15 per cent and an unspecified increase to the GST.

No government would be able to balance its budget without a “fundamental transition” between income tax and consumption tax, the council said.

But Mr Swan said the government from day one of the review had ruled out any consideration of increasing 10 per cent GST rate.

“It has a savage impact on people on modest incomes, and that’s why we’ve ruled it out,” he told reporters.

Leave a Reply

Your email address will not be published. Required fields are marked *