NSW Premier Mike Baird is all for it, but Victorian Premier Daniel Andrews has come out dead against raising the GST, which demonstrates precisely why Prime Minister Tony Abbott and Opposition leader Bill Shorten need to step in and show some leadership on tax reform.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Increasing and perhaps broadening the GST is only part of a tax debate that is years overdue, but it requires Mr Abbott and Mr Shorten to stop looking for points of difference for purely political motives and summon up the courage to put everything on the table.
And neither can be allowed the cynical excuse of doing nothing constructive until other political leaders fall into line.
For Mr Abbott that means dropping the requirement for every state and territory to support raising the GST before he is prepared to discuss it and dropping his blind refusal to also put changes to superannuation on the table.
As things stand the Victorian Premier’s opposition to raising the GST leaves Mr Abbott doing a fair impression of Nero, fiddling while Australia’s budgetary position descends into the red.
And Mr Shorten and his leadership team are no better. Labor has decided - for no sensible reason - to rule out increasing or broadening the GST, though it has flagged a review of superannuation rules and tax breaks because it considers that will be more palatable with Labor voters.
When just about every peak welfare organisation and many business groups have weighed in calling for change, with even the Reserve Bank questioning the effect of negative gearing on the housing market it is time for our leaders to start doing what we elect and pay them for - show some leadership.
The truth is we have one of the lowest consumption taxes of any advanced economy, a superannuation tax regime which benefits the rich far more than average income earners and a capital city housing market where only a small minority of first home buyers can ever hope to get into the housing market.
That’s an appalling report card for leaders on both sides of politics.