Could this man sell you a higher GST?

The Prime Minister has described it as a “sensible” idea and it has the support of a few state leaders, but the most important question is: can Mike Baird convince YOU that a higher GST is a good idea?

In this video, posted to to NSW Premier’s Facebook page, Mr Baird makes a pretty compelling case for a 5 per cent increase to the GST, saying the funds could be ploughed back into healthcare.

Mr Baird released the clip in time for tomorrow’s leadership retreat in which the PM and state and territory Premiers will discuss this issue, along with others.

Victoria and Western Australia are dead against the idea, while Queensland will not discuss the idea.

Australia has one of the lowest GST or equivalent rates in the OECD. The UK’s VAT is 20 per cent, New Zealanders pay 15 per cent, France, Belgium, Austria and Germany all pay rate around 20 per cent. In the US, where there is no national healthcare system, combined state and local sales tax 1.69 per cent to 9.45 per cent.

Mr Baird has proposed to increase the GST to 15 per cent, which would raise an additional $30 billion in revenue each year. The tax would apply to the same goods and services as it currently applies to.

He says half of the revenue could be used to offset the increased cost of living for lower income households (less than $100,000pa) with a one per cent income-tax cut, with the other half used to fix state and territory budget shortfalls.

There could also be a small increase to welfare payments, including the pension.

In his video, Mr Baird focuses on healthcare and benefits it would receive from an increased GST. He wrote on Facebook, “Like many of you, I’m sick of politics in this country. Petty bickering, sloganeering, chasing the next cheap headline.

Our nation has some big problems looming, perhaps the most pressing of which is funding our health system. In 15 years from now, we face a $35 billion funding crises that threatens to end healthcare as we know it.

Solving this problem will require more than the usual smear and fear. It will require leadership and ideas.”

Watch the video and tell us, do you think Mike Baird could sell the nation a higher GST?

How would you feel about a 15 per cent GST? Would it fix the nation’s problems or just hurt your hip pocket?