Treasurer Josh Frydenberg is eyeing more tax cuts on the other side of the coronavirus crisis after the Reserve Bank called for economic reform.
Reserve Bank governor Philip Lowe on Tuesday backed an overhaul of income, land and consumption taxes as he warned the pandemic would cast a shadow over the economy for a long time.
Mr Frydenberg said tax, infrastructure, training, industrial relations and deregulation were target areas for reform in the recovery phase.
“We’ll look at tax reform as an area of interest because we’re always looking for opportunities to cut taxes,” he told Sky News on Wednesday.
Despite Dr Lowe raising consumption tax, Mr Frydenberg played down any changes to the GST.
“We have no plans to change the GST,” he told ABC News Breakfast.
“What we do have a plan for is obviously lower taxes and that’s been our track record.”
The treasurer is keen to talk up $300 billion of already legislated income tax cuts, pointing to the government’s flatter tax system.
Coalition reforms mean people earning between $45,000 and $200,000 pay the same marginal tax rate of no more than 30 per cent.
Originally published as Coalition looks to post-virus tax reform