Abbott won’t back extension of GST

Opposition Leader Tony Abbott won’t be backing any calls to extend the goods and services tax to boost the economy’s bottom line.

An independent think tank believes GST should be extended to take in health, education and fresh food, which are currently exempt from the impost, yet account for 40 per cent of spending.

The Grattan Institute says broadening the GST base – that has remained unchanged since its introduction in 2000 – along with increasing the workforce participation for both women and older people, could rake in as much as $80 billion by 2022.

When Mr Abbott, who was a senior member of the Howard government that introduced the GST, was asked if he supported the idea, he said: “No, I don’t.”

The Grattan Institute also suggests raising the retirement age to 70. The Labor government has lifted the retirement age to 67 by 2023.

“I’m not saying it’s wrong, but I don’t think there should be any further lifting of the retirement age without a full community debate and I’m certainly not proposing that,” he told the Nine Network on Friday.

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