Australia’s Treasurer Scott Morrison has underscored the importance of speedy tax reforms to fix the problems with the current tax system that is “retarding” opportunities and punishing workers.

Echoing the comments made by Prime Minister Malcolm Turnbull, Morrison said all tax reform measures, including revision of GST to 15 percent are under active consideration, reports News.com.au.

Noting that the government is in a “discovery phase,” the treasurer said and he is not “under any pressure” to put forward a tax reform package so soon.

“If you’re going to go and change the tax system you need to I think engage in some pretty significant change because that’s the only way you can go and get the outcomes people would want,” he told ABC Radio.

Hampering growth

However, the Treasurer was candid that the tax system is “punishing” workers.

“We’ve got a problem with our tax system which is actually retarding growth in our economy and it’s retarding the opportunity for Australians to be in jobs and to work more and to be able to be saving more and investing in new ideas,” he said.

As for reforms, Morrison said both state and territory governments are negotiating in “good faith” with the Turnbull Government. He criticised Labor party for refusing to be part of that exercise and said the Opposition should be part of the debate and be promoting change to improve the real outcomes for people.

Labor’s concern

However, the Opposition has played down the budgetary impact from additional GST revenue.

“When the Government makes all these promises about the GST, what they say is we're going to pay for hospitals and schools, we're also going to hand back income tax cuts and we're also going to compensate people,” Labor leader Bill Shorten said.

He said the money will not stretch very far because too many promises are being made by the government. Shorten said Labor would fight the next election on the GST plank if the government broadened the tax. He said the money comes from the pockets of working people.

“Fifteen per cent every time you go to the supermarket or you pay the doctor's bill or you go to the hospital. The people who pay this are the people who are going to work every day and battling to make ends,” he added, the ABC reports.

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