Big parties reject Oakeshott's GST review

The federal government and opposition have rejected claims by independent MP Rob Oakeshott that the major parties "get it" on the need to review the GST as part of moves towards taxation reform.

Mr Oakeshott and his fellow independent Tony Windsor have called for a review of the GST despite Labor and the coalition declaring changes to the consumption tax are off limits - especially a year out from a general election.

However, Mr Oakeshott on Monday claimed recent phone conversations with "senior MPs" from both sides gave him confidence tax reform was being taken seriously as a post-election challenge.

This was denied by both the government and Opposition Leader Tony Abbott, who said there were "no plans, none" to change the GST base or its 10 per cent rate.

"I invite Rob Oakeshott to campaign in his seat for changes to the GST if he thinks they are necessary," Mr Abbott told reporters in Perth.

"We are about reducing taxes, not increasing taxes. We are about getting rid of taxes, not imposing new taxes."

Prime Minister Julia Gillard, Energy Minister Martin Ferguson and Finance Minister Penny Wong said the government was not interested.

"Let me be very clear about my position and the government's position on the GST - we will not increase the rate or broaden the base of the GST," Ms Gillard said in Cambodia where she is attending the East Asia Summit.

"People will remember that Labor was opposed to the GST ... because it is a regressive tax."

Australian Greens leader Christine Milne also dismissed the need to expand the GST, saying it was "not on".

Mr Oakeshott said while he was heartened MPs on both sides of politics "get it" on tax reform, he was still concerned the major parties were running away from the debate.

"I'm not heartened by the fact that we are in such a bad place with our politics that we cannot have a conversation as adults between politicians and the community about how we get our tax mix right for Australia," he told ABC radio.

However, Mr Oakeshott added tax reform was not just about the GST, citing the need for doing away with inefficient state taxes.

"That is an opportunity to engage the Australian community, not a threat to the election," he said.

Mr Abbott appeared to rule out any senior coalition MPs having spoken to Mr Oakeshott, saying the only party leader the NSW MP talked to these days was Prime Minister Julia Gillard.

"So he may well know that the Labor Party has a secret plan to increase the GST, to change the GST after the election," he said.

Senator Wong said Labor was looking at how the GST was distributed among the states and would be briefed soon on ways to make state taxes more efficient.

The Henry tax review, which did not include consideration of the GST, found that of all Australia's 125 taxes, 10 brought in 90 per cent of all revenue.

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