BREAKING NEWS Why Anthony Albanese could consider big changes to the GST
Items like fresh fruit and vegetables, bread, cooking oil, meat and unflavoured milk were exempted from the 10 per cent GST under a political deal reached in 1999 between former Liberal prime minister John Howard's government and the Australian Democrats in the Senate.
Labor had lost the 1998 election campaigning against the Coalition's proposed GST and voted against it in Parliament.
But Treasurer Jim Chalmers has revealed he would be open-minded about expanding the base of the GST to raise more government revenue, ahead of a productivity-focused roundtable in August.
This would mark the biggest change to the Goods and Services Tax since it debuted in July 2000, shortly before the Sydney Olympics.
'What I'm going to try and do - because I know the states will have a view on it, I'm going to try not to dismiss every idea that I know that people will bring to the roundtable,' he told the National Press Club in Canberra on Wednesday.
'I suspect the states will have a view about the GST - it's not a view that I've been attracted to historically but I'm going to try not to get in the process of shooting ideas between now and the roundtable.
'One of the ways that I am going to be inclusive and respectful in the lead-up to this roundtable is I suspect people will raise that question.'
Chalmers declined to confirm that he had ruled out any changes to the GST, even though he's personally opposed to increasing or expanding it.
'I haven't changed my view on it. And again, it's a nice little, cheeky attempt to get a rule in, rule out in.'
It's been a decade since state premiers called for an increase in the GST.
That's when South Australian Labor leader Jay Weatherill and his New South Wales Liberal counterpart Mike Baird called for an increase in the rate.
Funds raised from the GST are distributed to the states and territories via the Commonwealth Grants Commission.
Former Liberal prime minister Tony Abbott backed their call in July 2015, but two months later, Malcolm Turnbull rolled him as leader.
New Zealand in 2010 increased the GST to 15 per cent, up from 12.5 per cent.
Australia's 10 per cent GST is among the lowest in the world with only the United Arab Emirates (five per cent) and Thailand (seven per cent), Taiwan (five per cent), Oman (five per cent) and Jersey in the Channel Islands (five per cent) having lower consumption tax rates.
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