FEAR & GREED | Business News Q+A: IMF says to hike the GST. Have they got a point?
Nov 20, 2025
The discussion centers on the IMF's proposal to hike the GST in Australia. The hosts question the political feasibility of these recommendations and delve into the complexities of implementing reforms that consider local implications. They express frustration over external bodies suggesting sweeping changes without practical strategies. Additionally, there's an exploration of the influence of unions and the missed opportunities for reforms in the past. The need for better fiscal coordination between federal and state levels is emphasized.
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IMF's Broad Reform Prescription
- The IMF recommends wide-ranging reforms like higher GST, tax changes, labour market tweaks and a green transition to boost productivity.
- Sean Aylmer argues these proposals make economic sense but lack practical political pathways and equity consideration.
GST: Economic Sense, Political Cost
- A higher or broader GST may be economically sensible but is politically and distributionally difficult.
- Sean highlights that tax changes can be good economics yet poor politics and equity choices.
Keep Reform Ideas In Circulation
- Regular reminders about reform ideas can be useful even if immediate political action is unlikely.
- Sean suggests persistently airing reform options keeps them alive for future policymakers.