This article argues the case for changes to the Goods and Services Tax (GST) as a key part of fundamental tax reform in Australia. A more comprehensive base would bring gains in efficiency and simplicity, with equity goals better met by the income transfer system. Revenue gains of a broader GST base and/or a higher rate could fund tax mix change packages to replace more distorting state stamp duties and fund lower income tax rates. The tax mix change packages would improve efficiency and simplicity, with no substantial changes to aggregate revenue or to equity.
