Mike Baird’s plan to raise the GST to 15 per cent is a lazy solution to tax reform that will hurt lower-income families in NSW even more.

The Premier wouldn’t stand up to the Prime Minister when he cut $25 billion from schools and hospitals across NSW.

Now he’s doing Tony Abbott’s bidding for him with this simplistic proposal to bump up the rate of GST – increasing a regressive tax that hurts those who can least afford it.

Aggressive competition between states – who lower taxes in order to attract business and investment – is eroding source revenue. It’s time for the states to open up discussion about tax harmonisation.

An agreement on uniformity should consider payroll tax, racing tax and road user charges – delivering a more sustainable revenue base by preventing the current race to the bottom between jurisdictions.

Only then should changes to the scope of the GST be considered.

Quotes attributable to NSW Opposition Leader Luke Foley:

“There is nothing good about a regressive tax that places the greatest burden on those who can least afford it.”

“This is nothing more than Mike Baird doing Tony Abbott’s bidding for him – it’s a convenient distraction from the latest Bronwyn Bishop scandal plaguing the Commonwealth Government.”

“The real motivation of the Liberals is on display here: while Mike Baird is out there selling the idea of a bump up in the GST, Tony Abbott and Joe Hockey are planning a cut in income tax. It’s a regressive tax rise to replace a cut to a progressive tax.”

“It’s just not fair to hit lower-income families with a tax rise while giving higher-income earners a tax cut.”

“Instead of doing Tony Abbott’s bidding on GST, Mike Baird should stand up to him over the Commonwealth’s $25 billion of cuts to our schools and hospitals.”