How GST reform works
AUSTRALIA – Reform of the GST could deliver Australia a revenue boost of between $14 billion and $40 billion, boosting productivity and economic growth and enabling the abolition of less efficient taxes, as the country recovers from the economic impact of COVID-19.
A new report by PwC – How GST reform can help reboot prosperity for Australia – considers four different reform scenarios for the current GST regime. They include an increase in the rate of GST from 10 per cent to 12.5 per cent and broadening its base to cover previously exempt items.
Even prior to COVID-19, Australia’s tax system was ill‑equipped to support a growing economy, due to a number of structural factors including an over-reliance on personal and corporate taxes, the PwC report says.