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Former NSW Premier Nick Greiner has called for a broadening of the GST arguing reform is needed to help rebuild the Australian economy.

In an exclusive interview with Sky News Political Editor Andrew Clennell, Mr Greiner said reform would only be possible with a “grand bargain” between centre left and the centre right but maintained it would benefit Australians.

“I do think personally that making the base wider is sensible if you want the GST to be the most significant source of state revenue,” he said.

“Having a GST or a value added tax or a consumption tax that covers only 60 per cent and it doesn’t cover fresh food, health, education, the private spending on those, they are the things that are growing.”

When asked what would happen if the tax went unchanged, Mr Greiner said the country’s economic recovery would be more difficult.

“(If it doesn’t happen) it’s harder for Australia to recover and increase its ongoing, long-term economic growth which is clearly the answer to fixing the jobs problem created by COVID.

“The cost of inaction is very great but it also kicks the problem downstream.”
However, Mr Greiner feared the biggest obstacle to GST reform was not the economic argument but the political nature of deal making.

“I don’t think GST reform is very likely without a grand bargain between the centre left and the centre right and I don’t sense that’s about to happen,” he said.