I was pleased to see the Treasury Secretary, Dr Martin Parkinson, suggest today that the GST should be broadened to cover currently excluded items – i.e. health, education and fresh food (see Fiscal sustainability and living standards – the decade ahead). Broadening the GST could boost GST revenue by up to 20% or around $10 billion. This would mean an extra $2 billion to Queensland, assuming it flows to the States as per current practice and the Commonwealth doesn’t cut other payments to the States (so that it would effectively secure the increase in GST revenue). I’ve previously commented on the need to broaden the GST:
I’ve also previously spoken about what I learned from Dr Parkinson when he was my Executive Director in Treasury’s Macroeconomic Group in the mid-2000s:
Dr Parkinson has been a big influence on many people who have walked the halls of the Treasury building, and I’m sure many of my former Treasury colleagues will be pleased that the PM has asked him to stay a bit longer (see Treasury chief Martin Parkinson earns temporary reprieve from axing).