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‘Face up to higher taxes’

Businessman Tony Shepherd has weighed into the GST debate with a blunt warning for taxpayers.

The former head of the Abbott government’s commission of audit says if people want the same benefits they get now – an “Olympic gold standard” – they will have to pay more, not less, to Treasury.

“Get over it,” Mr Shepherd said, while adding that any additional revenue should be used to pay down debt.

His comments came as Turnbull government ministers continues to insist any changes to the mix was aimed at lowering the overall tax burden.

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So far the government’s tax reform discussion has centred on the 10 per cent GST and potentially increasing and broadening its rate, which has the support of business but is opposed by Labor, the Greens and even some on the government’s own benches.

Minister for Cities and the Built Environment Jamie Briggs said the government wants to reduce the taxation impact on Australians and make the economy more competitive.

He said having a conversation about these difficult issues is the hallmark of Mr Turnbull’s leadership.

“The only people it would seem that are not willing to have a reasonable discussion on this is the Labor Party … all they want to do is create a scare campaign from day one,” Mr Briggs told Sky News.

Senior Labor frontbencher Anthony Albanese, like Mr Shepherd, said the idea that you can have more and more services and infrastructure with less and less revenue, “certainly isn’t right”.

Labor senator Katy Gallagher also said the government’s message so far has been uncoordinated.

“People don’t get what they are talking about,” she told Sky News.

The GST rate of 10 per cent and exemptions to fresh food, health and education have been in place since its introduction in 2000.

Australian Medical Association president Brian Owler said health was excluded from the GST for good reason – Australia already has one of the highest out-of-pocket expenses compared to other countries.

Opposition health spokeswoman Catherine King warned raising the GST from 10 to 15 per cent and extending it to health and fresh foods would cost Australians $15 billion a year.

“A $9.6 billion-a-year hit on healthier foods would make junk food even more attractive, worsening health outcomes and adding to health costs,” Ms King said.

Michael McCormack, an assistant minister in the Turnbull government, agreed that it would discourage people from buying fresh food and farmers would face extra costs.

WA Premier Colin Barnett said removing the exemption on food made sense, but thought an increase to a 15 per cent GST rate would be too much to swallow in one hit.

“I think the Australian public would accept 12.5 per cent,” he told Perth radio 6PR.

Association of Independent Schools executive director Geoff Newcombe also warned that extending the GST to education would put private schools out of reach for many Australians parents.

“We think this is not just an extra tax, but an attack on choice,” he told ABC radio.

– AAP

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