Former Prime Minister Paul Keating.
Former Prime Minister Paul Keating. PAUL MILLER

Keating’s 15% GST swipe fails to sway Treasurer

TREASURER Scott Morrison has rejected former treasurer and prime minister Paul Keating's criticism of a potential 15% GST.

The Treasurer's response came after Mr Keating lambasted the idea of raising the GST with no compensation for the poorest in the community.

The former PM also wrote in Fairfax media that raising the GST did not equate to "tax reform" and implored voters not to trust any government with the potential $33 billion windfall from a 15% GST rise.

While the government has not officially proposed changes, Mr Morrison has said changes are on the table.

Mr Keating said a compromise could be a 12.5% GST, as long as wider reforms ensured vulnerable people were not affected more than wealthy Australians.

But Mr Morrison said any changes had not been decided and the government was focused on anything that could increase jobs and economic growth.

He said not only had Mr Keating first floated the idea of a consumption tax, but Labor had not changed the GST when the party assumed power.