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Australian Prime Minister Malcolm Turnbull has described the argument for a goods and services tax (GST) hike as flawed.
According to Turnbull, "the idea that there is this huge, easy pot of gold to grab, simply does not stack up."
Turnbull made the comments during a question and answer session at the Australian Financial Review Business Summit. He denied claims that the Government has failed to take on "big tax reform," emphasizing the recent changes to superannuation tax concessions and the increased threshold for the middle income personal tax rates.
Turning to the issue of GST reform, Turnbull acknowledged that there will be calls to increase the GST and to either give the revenue to the states or use it to reduce company tax.
However, he argued that "the problem with the GST, raising the GST, is that because so many Australians are not in the tax net, by the time you have [ensured that] the bottom and the second bottom quintile – so the bottom 40 percent of households by income – are compensated so that they are not worse off, or not materially worse off, you have... little money left."
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