If we want a better Australia, we need to raise the GST – and cut income taxes

When the Goods and Services Tax (GST) was introduced in 2000, it was a more than just tax reform. It was a renegotiation of how the Australian federation works.

The federal government agreed to pass all GST revenue to the states. In return, the states agreed to abolish a range of narrower and less efficient taxes, providing them with a better tax base to fund the many essential services they provide.