Prime Minister Tony Abbott has sat down with Liberal Democrats senator David Leyonhjelm to discuss the possibility of raising the GST after the next election.
The Sunday Telegraph reports Abbott is canvassing a broadening of the GST to cover more items under a new reform of the federation.
Leyonhjelm told The Telegraph Abbott had said, “the money raised would be enough for the states to pay for health and education.”
“There would be a corresponding fall in other taxes,” he said.
Labor has warned that if increased to 12.5% a two-child family could incur costs of up to $205 a fortnight without tax cuts to compensate.
Opposition leader Bill Shorten has called Abbott out, saying “Australians won’t be sucked in by this pathetic attempt.”
“This was Tony Abbott’s plan all along — to cut billions of dollars from schools and hospitals and blackmail the states into increasing the GST,” Shorten said.
“He said 33 times before the election that he wouldn’t increase the GST. He lied every single time.”
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