One Nation leader Senator Pauline Hanson has attacked renewed calls for the federal government to increase the GST to 15 per cent, accusing Treasurer Jim Chalmers of considering another tax hit while Australians struggle with the cost of living.
Hanson’s comments came after it was reported that Commonwealth Bank chief executive Matt Comyn again backed a higher GST, responding to questions about whether Australia should tax income less and consumption more.
“Yes, we would,” Comyn said when asked whether he supported a higher GST.
Comyn has previously advocated increasing the GST from its current 10 per cent to 15 per cent, alongside changes to the personal income tax system.
Hanson said Australians did not need another tax increase. “Jim Chalmers doesn’t need any help finding new ways to tax Australians,” she said.
“Australians have only gone backwards on Labor’s watch. Rent, insurance and groceries are increasingly unaffordable, while Labor’s reckless spending keeps pressure on inflation and racks up debt that today’s children will be left to repay.”
She accused the Treasurer of entertaining a proposal that would make everyday expenses more expensive. “The last thing our country needs is Jim Chalmers reaching even deeper into the pockets of working Australians,” Hanson said.
The GST currently applies to most goods and services but excludes or provides special treatment for areas including fresh food, health and education. A rise to 15 per cent would therefore increase the tax burden on many everyday purchases.
Hanson argued the impact would be felt across household essentials, including power bills, petrol, nappies, toilet paper, school shoes, insurance and home-building materials.
“Only someone completely insulated from the cost-of-living crisis could think Australians should pay even more for everyday essentials and the materials that build homes.”
Hanson also took aim at Commonwealth Bank after its payment network experienced an outage over the weekend, leaving some customers unable to make payments.
“Perhaps Commonwealth Bank should spend more time making sure its customers can actually make payments and less time pushing the Treasurer to make everything they buy more expensive.”
The broader debate comes as policymakers and economists examine Australia’s reliance on personal income tax and the effects of bracket creep.
Supporters of GST reform argue that shifting some taxation from income towards consumption could improve incentives to work and invest and provide a broader revenue base. The OECD has previously identified Australia’s heavy reliance on income tax as an area for reform.
However, economists have also warned that a higher GST can disproportionately affect lower-income households because they tend to spend a larger share of their income.
It is reported that one proposal examined by the Parliamentary Budget Office would introduce a GST-free threshold to help protect lower-income Australians.
For Hanson, however, the immediate priority should be reducing the financial pressure already facing households rather than increasing consumption taxes.
“Instead of taking responsibility for the mess, Chalmers is now entertaining calls from a big bank CEO to raise the GST and make the cost of living even worse.”
Earlier, Chalmers has accused One Nation of wanting to “destroy” compulsory superannuation. “One Nation wants to destroy the compulsory superannuation system, just like the Liberals and the Nationals,” he said.
“They are all a threat to the retirement incomes and economic security of Australian workers.”
The Treasurer has also broadened his attack to include the Coalition, accusing the Liberals, Nationals and One Nation of sharing what Labor described as an “anti-worker, anti-super” ideology.
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