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Despite company and income tax revenues falling through the floor, the federal government believes it is “too difficult a task politically” to reform the GST, according to Sky News Political Editor Andrew Clennell.

The Morrison government has spent in excess of $214 billion in economic stimulus and other measures to cushion the damaging impact of the novel coronavirus.

The fiscal measures represent in excess of 11 per cent of Australia’s total GDP, and despite this the economy slipped into a technical recession for the first time in 29 years.

Prior to the crisis, Prime Minister Scott Morrison ruled out lifting the GST from 10 per cent to 12 per cent or broaden the base to include fresh food and other basics.

Mr Clennell said economists have long advocated for an increase in consumption-based taxes.

“Economists will tell you that GST and land tax are the most efficient taxes,” he said.

"In other developed countries, their company tax is lower, their personal income tax is lower, and their consumption taxes are higher.

"Yet it seems it is seen as just too difficult to do here. There is the barrier of the Labor state governments about to go to election – Queensland and WA – federal Labor and therefore the Senate.”

Mr Clennell said despite this, the current crisis may be the catalyst for systemic tax reform.

“In times like now, apart from anything else, the revenue you collect from company tax and personal income tax goes through the floor,” he said.

“There is an argument that our economy and the budget need this type of tax reform and that it could boost the economy and investment.”