Politics · Australia · 12 hrs ago
Economist urges GST rise and gas tax to ease pressure on Australians
An opinion writer says the Albanese government should take steps to ease household pressures and rebuild trust in politics.
The call comes as Australian consumer confidence has fallen to levels more often seen during recessions, even though the economy grew by 2% in the year to June.
The writer points to pressures including higher interest rates, unemployment and inequality, alongside global forces such as energy shocks and climate events.
One proposal is raising the GST to 15%, paired with targeted income tax cuts and higher payments for people on low incomes, renters and pensioners.
The proposal would also send additional revenue to states to support health and education, and could reduce their reliance on gambling income.
The writer also backs a tax on gas companies’ excess profits, but the available text does not give details of how it would work.
These measures would take time to implement and recoup their costs, and the writer says they should help households in need without worsening the long-term budget position.
An opinion article says the Australian government could raise the GST and introduce a gas tax as part of measures to ease pressure on households.
The author backs a Grattan Institute proposal to raise the GST to 15%, with targeted income tax cuts and higher support payments for lower-income households.
The article says the GST proposal could provide an additional $76bn a year, with the remainder returned to states to support health and education.
It also recommends a tax on super profits from gas, but the article text provided does not give details of how it would work.
The proposals are presented amid falling consumer sentiment and concerns about inflation, interest rates and public debt.
- Who
- The article’s author urges the federal government to consider the proposals.
- What
- The author supports raising the GST to 15% and introducing a tax on super profits from gas.
- When
- The article was published on 22 October 2026.
- Where
- Australia.
- Why
- The author argues that the measures could ease pressure on households, help fund health and education, and improve the budget position.
This story does not have two clearly opposing sides.
Consumer sentiment in Australia fell to levels more often associated with recessions, according to the article.
The article says there were calls to “lower the temperature” after an alleged attack on independent MP Helen Haines.
Guardian Australia published the article setting out the author’s policy proposals.
- Proposed GST rate
- 15%
- Current GST proposal’s estimated annual revenue
- $76bn
- OECD average GST rate cited
- 19.4%
- Fuel excise and road user charge cuts mentioned
- $3.3bn
- Economic growth
- Real GDP grew 2% over the year to June
What people are saying
I’m a big fan of the Grattan Institute idea this week of raising the GST to 15% (still below the OECD average of 19.4%) with appropriate income tax reductions targeted at low-income households, along with increases in jobseeker and youth allowance payments, rent assistance and pensions.
Another excellent, if more complex, idea is to …