AMONG all the OECD countries, Australia has the lowest GST rate. As against 7% of GDP in other OECD economies, Australian GST accounts for only 4% of GDP. In this background, OECD has recommended that Australia should hike its GST rate.

The OECD also notes that contrary to 25% corporate tax rate in other OECD countries, Australia has 30% company tax rate, which triggers flight of capital. Taxing consumption is more efficient than taxing corporate profits.