25 Years of GST in Australia: Is It Time for an Update?

GST Reform Gains Momentum in Australia: After 25 years, calls are growing to modernize Australia’s GST system, which critics say hasn’t kept pace with economic shifts. Proposals include expanding the tax base and increasing the 10% rate to support income tax cuts.
Broader Tax Base, Higher Rate Proposed: Reform advocates suggest raising GST to 12.5% and applying it to exempt sectors like health and education. This could generate up to $40 billion annually, easing income tax burdens while ensuring protections for low-income households.
Digital, E-Invoicing, and Crypto Updates Advance: Australia has updated GST rules to cover digital services, low-value imports, and e-invoicing. While these changes help close compliance gaps, experts argue broader systemic reform is needed to future-proof public finances.