Prime Minister Anthony Albanese dismisses GST changes ahead of economic roundtable, despite calls for ‘brave' overhaul

Sky News AU

10 hours ago

Prime Minister Anthony Albanese has ruled out lifting the Goods and Services Tax (GST) as part of any upcoming economic reform ahead of the productivity round table in August.
Economists have long pushed the government to increase the GST and reduce personal income taxes, as a way to equalise the tax system.
Speaking at Sky News' Australia's Economic Outlook forum on Friday, Mr Albanese said that changes to GST were 'not something we have given any consideration to'.
'I'm a supporter of progressive taxation, consumption taxes by definition are regressive in their nature, so that's something that doesn't fit with the agenda,' he said.
While refusing to play what he called the 'rule-in, rule-out game', Mr Albanese made clear the government was not considering changes to the GST.
However, he said he remained in favour of lowering income taxes 'as low as possible, consistent with providing appropriate services'.
'I remind you there's only one political party that went to the election arguing for lower taxes and that was the one that I lead.'
CPA Australia, one of the country's major accounting bodies, has said it will submit a plan for 'fundamental reform' to the GST ahead of the economic round table.
'It's time for a grown-up conversation about Australia's tax system and the GST's structural weaknesses,' CPA Australia chief executive Chris Freeland said.
'Most tax specialists believe that increasing the GST is the key to broadening the overall tax base.
'Reducing the reliance on personal income tax would put more money in people's pockets and ultimately generate more revenue to drive economic growth.'
While Mr Albanese said it was not on his agenda, he added that people were entitled to put forward whatever proposals they wish at the round table.
Another major topic of discussion at the Australia's Economic Outlook 2025 event was the role of the private sector in driving productivity.
Mr Albanese said he wanted to make it easier 'for business to create jobs, start and finish projects, invest in new technology and build new facilities'.
'From big employers to the millions of small businesses… Our government wants you to be able to resume your rightful place as the primary source of growth in our economy,' he said.
'That is the essential purpose of the roundtable we are convening in Canberra in August. We are seeking a broad range of views, so we can build broad agreement for action.'
Mr Albanese's comments were welcomed by Australian Industry Group chief executive Innes Willox, who expressed concern about the 'failing investment economy' in recent years.
'Australia's long-term productivity challenges have been laid bare in recent years, with anaemic growth, difficult business conditions and a falling investment economy,' she said.
'We welcome Prime Minister Anthony Albanese's promise to be brave with reform… The evidence is clear on private sector weakness – around four in five of the jobs created last year were in government-supported industries.
'The Prime Minister rightly recognises that business needs to resume its rightful place as the engine of growth, if Australia is to realise its ambitions for a strong, productive and diversified economy.'