GST won't be part of tax reform: Chris Bowen
by: LAUREN WILSON
From: The Australian
July 07, 2013
TREASURER Chris Bowen has ruled out reviewing the base or rate of the GST, despite stating the need for further discussions with the states on tax reform.
Speaking on Sky News' Australian Agenda, the newly-appointed Treasurer said Australia's taxation system could be made more efficient, but a rethink of the GST was not on the table.
“I don't think there is a case for increasing the GST and I don't think there is a case for broadening the base,” Mr Bowen said.
“I think there is a case for talking to the states about a more efficient tax system and reducing the number of taxes we have in Australia which don't raise very much money but are a compliance burden for business and an administrative burden for government,” he said.
“That is a very important discussion to be had.”
Since returning to the Prime Ministership, Kevin Rudd has pledged to develop a better working relationship with the business community.
Mr Bowen said Labor would also be a party that looks after small business, but he would not comment on whether the Rudd government would look to give small business tax relief in the medium term.
“I think the approach both the Prime Minister and I would take would be a pro-small business approach,” he said.
“We want the Labor Party to be, frankly, a party that small business is comfortable with because we see small business as the engine room of the economy.”
Mr Bowen reiterated that he was not looking to make changes to the government's fiscal parameters, as outlined in the May budget handed down by former Treasurer Wayne Swan, which has Australia returning to surplus in 2015-16.
“The budget remains the government's budget - it is treasurer Swan's budget but I stand by it as the new treasurer,” he said.