Prime Minister Tony Abbott has kept alive the case for an increase in the GST, saying it would be a more efficient way to collect tax while cutting other taxes at the same time.
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Mr Abbott used a radio interview with Sydney host Alan Jones to admit his government was considering raising the GST in its tax reform white paper process.
"And we'll have more to say about it in the months ahead," Mr Abbott said on Thursday.
The conversation was prompted by Mr Jones, who said the government would be able to sell the idea of an increase in the GST to 15 per cent if it promised to cut company tax and income tax at the same time.
Mr Abbott said that was a "very powerful argument" but he would only want to increase the GST if the "overall burden of taxation" was to come down simultaneously.
"There is an efficiency argument for taxing earnings less and taxing spending more. I accept there is a strong argument," Mr Abbott said.
"This is something that we're looking at as part of the tax reform white paper, and we'll have more to say about this in the months ahead.
"But it's got to be in the context of overall lower taxes ... and a problem with a lot of the people who are saying 'just whack up the GST' is that they want the overall burden of tax to go up … and that's just wrong."
Mr Jones replied: "Good on you. Ideologically brilliant."
The Prime Minister's comments come after Finance Minister Mathias Cormann said last week that there was a "conversation to be had" with the community about tax reform, including changes to the GST, because the government wanted to take to the next election a tax reform package involving personal income tax cuts.
"Right now we are focused on getting spending growth under control. That gives us some room, but obviously if we want to raise less revenue from one tax source, you have to take from other areas and that is the conversation we are currently having," Mr Cormann said.
Labor leader Bill Shorten criticised Mr Abbott's comments on Thursday.
"Thirty-three times before the last federal election, Mr Abbott, in return for chasing people's votes, said there will be no change to GST. Now he is proposing to change the GST," Mr Shorten said.
"Is that the full extent of the creativity for Australia, their plan is to increase the GST to 15 per cent and put it onto school fees and healthcare costs and fresh food?"
