No plans to increase GST: Russell Matheson

Macarthur MP Russell Matheson (Liberal) saidsuggestions his government would support an increase tothe goods and services tax was simply ”scare mongering”.

Ben Moroney (Greens) — who will contest the seat of Macarthur at the next election — criticised Prime Minister Malcolm and treasurer Scott Morrison for backing a proposal which would increase the tax from 10 per cent to 15 per cent.

The recommendations by the Financial Services Council also suggested reducing tax rates for large companies.

‘‘The Greens oppose the GST and will fight any attempt to raise it,’’ Mr Moroney said.

‘‘If the government wants to talk about raising revenue to fund the public services people expect — and we welcome that discussion — then they can start by talking about forcing corporations and the ultra-wealthy to pay their fair share.’’

Mr Matheson said there had been no formal proposal put forward and any decision regarding a raise would have to be supported by all state governments.

Currently GST revenue collected by the federal government and distributed to the states.

Asked whether he was in favour of an increase, Mr Matheson said: ‘‘I’d have to look at the proposal, what restructure occurred and how it affected the most vulnerable people in the community.’’

Werriwa MP Laurie Ferguson (Labor) was opposed to any GST increase.

‘‘People on very different income levels paying the same amount of tax inequitable,’’ he said.

‘‘Estimates show in the worst case scenario, average families could be $4000 a year worse off.

‘‘Labor believes we shouldn’t be taking the easy option and hitting the average person.’’

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