Australia must charge GST on food in order to raise GDP, new report claims

The government will have to raise the retirement age to 70, get more women into the workplace and change up the GST system if they want to grow the GDP by upwards of $70 billion by the end of the decade.

That's the message from a new report by the Grattan institute entitled Game-changers: Economic reform priorities for Australia.

The report, published June 8, aimed to "identify economic reforms that would produce the biggest returns and that would be supported by most policy specialists as both desirable and workable."

Of particular interest was the call to add GST to food, health and education, suggesting that the current system, which excludes around 40 per cent of consumption, was not generating enough revenue.

The report argued that if the government "collected more revenue from efficient taxes, and less from inefficient, distortionary ones", Australia could potentially see GDP increases of up to $25 billion per year.

While such a move may be beneficial for the economy, it would no doubt impact many Australian households by potentially raising the price of everyday essentials.

It is therefore necessary for people to be budgeting accordingly, so that they can be assured of having the resources necessary to make it through a rainy day.

A price comparison can evaluate the amount you're paying for amenities, and help reduce gas and electricity prices by finding a cheaper and more suitable provider. 

Posted by Charlie Moore