Goods & Service Tax (GST) 31 October 2026
Proposed GST Increase Sparks Political Pain, Little Gain
The Grattan Institute’s proposal to expand the Goods and Services Tax (GST) has drawn sharp criticism, with analysts warning that the change would deliver minimal fiscal benefit while increasing the cost of living for Australians. Critics argue that the modest revenue boost does not justify the political fallout and the added burden on households, especially those on lower incomes, making the plan a risky move for any party pursuing it.
The Grattan Institute suggests widening the GST base, but experts say it would hurt Australians more than it helps.
- Revenue gain is modest – the extra funds are unlikely to offset the higher prices for consumers.
- Household costs rise – low‑income families would feel the pinch the most.
- Political risk – any party pushing the increase could face significant backlash.
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