Canavan calls for tax rethink, opposes increasing GST
ROCKHAMPTON-based Senator Matt Canavan stands opposed to any proposal to increase GST to 15%.
In a recent interview with Sky News, Senator Canavan said he was against increasing the GST due to Australia's debt position.
"In my view successful tax reform comes from lowering the tax burden on Australians," Senator Canavan said.
"Actually making our tax system a smaller burden on businesses and households of Australians, that's what has been a success in the last 20 years. A few years ago we saw the Labor Party try to put in a carbon tax which increased our tax burden, it was soundly rejected.
"The GST, when it came in in 1998, massively reduced the tax burden on the Australian people and when you go back and look at that reform it actually cost the budget $18 billion to get that through, it was a tough sell."
The Turnbull Government has moved to reignite the tax reform debate, with speculation in some quarters the GST could rise from its current 10%.
Senator Canavan said increasing taxes would lower economic growth and make it even harder for the government to get the budget "under control".
"I think if we're going down this path we need to do something similar but right now we don't have $18 billion," he said.
"We need to make sure any reform is also consistent with, what I believe, is the overriding economic imper-ative right now and that is to get our balance back into some kind of shape.
"We are borrowing far too much money every year, just the other week we ticked over $400 billion in debt."