Federal Independent Tony Windsor has suggested the Federal Government increase GST by 1 per cent to allow for the removal of 115 inefficient taxes.

 

Mr Windsor was joined by fellow crossbencher Tony Crook after both called for the GST to be examined in the upcoming October Tax Forum.

 

"I think that the simplicity of that argument is telling, and there may well be a way forward that you can eradicate some of these things we don't want and then be revenue neutral through the GST,” Mr Windosr said. 

 

The calls by Mr Windsor and Mr Crook come after Treasury warned that the tax had become inefficient and increasingly cumbersome.

 

Treasury has told the Federal Government that the tax is resulting in a $15 billion a year leak due to tax breaks.

 

Rob Heferen, Treasury’s executive director of revenue, said that the tax was becoming less efficient in its current form because the increasing popularity of tax free goods and services such as private health insurance, private education and housing.

 

The Federal Government previously refused to apply any increases to the tax, with Treasurer Wayne Swan saying it would “hit all Australians.”