Albanese Rules Out GST Hike, Outlines Pro-Business Agenda for Labor’s Second Term
Prime Minister Anthony Albanese has ruled out any increase to the goods and services tax (GST), reaffirming Labor’s commitment to supporting small businesses and the private sector as part of its plan to lift productivity and drive economic growth.
Speaking at Australia’s Economic Outlook event in Sydney, co-hosted by The Australian and Sky News, Mr Albanese said that consumption taxes like the GST, which has remained at 10 per cent since its introduction in 2000, do not align with Labor’s economic philosophy.
“It’s not something that we have given any consideration to,” he told Sky News’ Andrew Clennell. “I support progressive taxation. By nature, consumption taxes are regressive — and that doesn’t fit with our agenda.”
While avoiding specific commitments on income tax, the Prime Minister said his preference is for “income taxes to be as low as possible and wages as high as possible.”
He also underscored the importance of tax reform in enabling the private sector and small businesses to lead job creation and economic expansion, adding: “Government should be a driver of growth, but not the driver of growth.”
Boosting Business and Productivity
Albanese’s second-term vision includes embracing emerging technologies like AI, reducing regulatory duplication across government levels, enhancing domestic supply chains, and increasing female workforce participation.
“Our government wants you to reclaim your role as the main engine of growth in our economy,” he said.
This renewed focus on business comes after criticism from some industry leaders that Labor’s first-term industrial relations policies — such as the Same Job, Same Pay initiative — were restrictive.
Albanese called on business leaders, unions, and civil society to collaborate at Labor’s upcoming productivity roundtable in August, aiming to build a broad consensus on reform.
“Often, debates about economic change are framed around what could go wrong,” he said. “But real progress will come from focusing on what we can achieve when we get it right.”
Coalition Criticism Over Super Tax
Opposition small business spokesperson Tim Wilson responded critically, urging the government to scrap its proposed superannuation tax, which would apply to unrealised capital gains.
He argued that Labor’s plan represents a “family savings tax” that unfairly impacts small businesses and superannuation investors.
“The only way the Prime Minister can truly support small businesses is by addressing the real barriers — overregulation and tax pressure,” Mr Wilson said.
When questioned, Albanese defended the super tax, noting it had already been announced during Labor’s previous term and would affect only “half a per cent” of Australians.
