Part 4/8:
The conversation touches on historical debates, notably during John Howard's tenure, about the adverse effects of GST hikes on low-income families. Phillips affirms the need for targeted assistance—"to make them whole"—such as welfare support or other compensatory policies. This approach aims to strike a balance where the government can reform the tax system without exacerbating inequality.
Furthermore, he points out that the recent analysis indicates higher GST rates could be introduced with minimal economic disruption, especially when compared to other revenue-raising options like increasing income or corporate taxes. The evidence suggests that, if designed and offset appropriately, a higher GST could be the most efficient and least invasive way to increase national revenue.