Grattan Institute Proposes Raising GST to 15 Percent and Taxing All Food

Published 2026-10-31

The Grattan Institute, an Australian public policy think tank, has recently proposed a major change to the goods and services tax (GST). The plan would increase the GST from 10 percent to 15 percent. It would also expand the tax to cover all food, which would be a significant change for households across the country.

The GST is a tax added to most goods and services sold in Australia. At present, the 10 percent rate applies to many products, but basic food is generally exempt. Under the proposal, food that is currently GST-free would become subject to the tax. This means that everyday items such as groceries could cost more for shoppers, although the exact effect on prices would depend on how the policy was designed and implemented.

An article published by Independent Australia has argued that the proposal would cause political difficulties for the government that introduced it while offering only limited benefits. The article suggests that changes to such a widely known tax are often unpopular with voters. However, the proposal itself is a recommendation from a research body and has not become government policy. Any change to the GST would require a decision by the federal government and, in most cases, the agreement of the states and territories, which receive GST revenue.

The debate over the proposal is likely to continue as policymakers, economists and the public consider its possible effects on household budgets, government revenue and political support. For now, the GST remains at 10 percent, and no changes have been announced.

Sources: Independent Australia

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