Abbott encouraged by premiers' input

Prime Minister Tony Abbott is encouraged by proposals for his leaders retreat with premiers, including Mike Baird's call for an increase in the GST to 15 per cent.

He also noted South Australian Premier Jay Weatherill's suggestion to broaden the base of the GST to take in financial services.

"I think Australians should be hopeful that this generation of leaders is capable of addressing the big subjects," Mr Abbott told reporters in Sydney on Monday.