Premiers urged: raise GST, cut income tax Font Size: Decrease Increase Print Page: Print Stephen Lunn | March 29, 2007 A HIGH-LEVEL report prepared for the Labor premiers has raised the prospect of increasing the GST and lowering income taxes as part of a broader set of measures to overhaul federal-state relations.
The premiers are being told that Australia could reap a "federalism dividend" of $86billion a year - or $4188 a head - if taxes such as the 10per cent GST and income tax rates were traded off to give the states greater financial freedom.