PENSIONERS and other seniors on low fixed incomes would need compensation if the GST was expanded, National Seniors chief executive Michael O'Neill has said.
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The Federal Government has been consulting with the states this month on tax reform options including potentially raising the GST and broadening it to cover areas including healthcare, education and financial services.
Any changes are expected to be part of a comprehensive package which would include superannuation tax reform.
"We are not looking to increase taxes overall, what we are looking to do is make sure that the taxes we have in this country are fit for a purpose," assistant treasurer Kelly O'Dwyer said.
Mr O'Neill said seniors welcomed the tax reform discussion and were open to GST changes.
"Australians want a serious debate about tax revenues and efficiencies and that includes the GST," he said.
However any discussion would have to encompass compensation models for people on low fixed incomes.
"The carefully planned household budgets of retirees very much centre on basic essentials like food, utilities and health," he said.
"As part of a complete package, everything should be at that table.
"For example, stamp duties might be a bonanza for state governments, but they're a huge disincentive for older people who want to downsize.
"Let's consider where everything fits and interacts, and do away with the waste and inefficiencies."
