Federal Government considering giving share of income tax to states and territories, Scott Morrison says

Federal Treasurer Scott Morrison is set to consider giving a share of income tax to the states and territories as part of ongoing reform discussions.

Under the proposal, states would get a share of the $200 billion collected from income tax annually, while the Federal Government retained part of the proceeds of the Goods and Services Tax (GST).

Mr Morrison told News Corp that it was a "legitimate and reasonable" idea.

"What the states are saying to me, among many other things, is that they are looking for greater stability and predictability of their revenues going forward," he said.

"I think that is an entirely legitimate and reasonable thing to put on the table.

"That's why I was happy to look at it in a positive light."

South Australia's Labor Premier Jay Weatherill voiced the proposal last month, calling for an increased GST of 15 per cent.

It comes after renewed debate about the long-term future of the tax system, with the government also considering whether to increase or broaden the GST.

Commonwealth Treasury had previously modelled eight options for tax reform, but no consensus was reached when state and territory leaders met earlier this month.

Federal Labor however has ruled out supporting an increased GST, with Opposition Leader Bill Shorten stating that "jacking up the GST to 15 per cent is not innovative, agile or creative".

Source: ABC News

Leave a Reply

Your email address will not be published. Required fields are marked *