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Hockey questions whether GST has a future

AAP

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Politicians hate talking about the GST.

Although it is one of the nation's more efficient taxes, state and federal politicians try to avoid discussion about increasing or widening the base of the 15-year-old consumption tax.

It's just not a vote winner.

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Treasurer Joe Hockey took a new approach to the issue on Sunday.

"My view is you have to question whether in 30 or 40 years time taxes like the GST or company tax will be around," he told Sky News.

The development of internet commerce has led to an increase in foreign goods transactions and services.

"There are going to be more and more good and services that are provided for offshore under free trade agreements," he said.

He said there is also intense competition between countries when it comes to company tax rates and that capital is more mobile than ever.

In the meantime, Mr Hockey said there has to be an agreement between all the states to make any changes to the GST.

"We need bi-partisan agreement. If you can't deliver, there is no point proposing it in this environment," he said.

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