A lift in the GST to 12.5 percent will cost households about three times more than a $27 - $29 per tonne carbon tax, but will only raise around 30 percent more revenue for the federal government, new research shows.
The Parliamentary Library research, released on Sunday, found a carbon price would raise $10.58 billion per year in revenue and would cost households about $11.
By contrast, a GST of 12.5 percent would generate $14.26 billion, but households would cop a weekly hit of $30.60.
"Tax hike: How a 12.5 per cent GST will cost houses three times more than carbon price"November 7, 2015
The great big new tax on everything: How a GST rise will cost householders more than carbon - https://t.co/oaCZ53Lohz via smh— Kristina Keneally (@KKeneally) November 7, 2015
Greens MP Adam Bandt said the research showed bringing back a price on pollution would be a fairer move for Australian households than boosting the GST.
"A 12.5 percent GST would raise a similar amount of new revenue to a $28 per tonne carbon tax, but would cost households around three times as much," Mr Bandt said.
“Dollar for dollar, it is fairer to bring back a carbon tax than to lift the GST, and it would cut pollution as well.”
The research comes amid speculation that the federal government will push to raise the GST from 10 to 15 percent in an effort to generate revenue.
Labor has ruled out supporting a lift in the GST and says it is willing to fight an election on the issue.
The latest research, commissioned by the Australian Greens, follows recent Australian Council of Social Service (ACOSS) modelling showing a rise in the GST to 15 per cent would consume 20 percent of disposable income for those in the bottom fifth of households.Suggest a correction