Nick McKim, the Greens’ spokesperson for economic justice, criticized the idea of taxing fresh food and utilities instead of increasing corporate tax, calling it “lazy.”

Meanwhile, James Paterson, the Opposition’s finance spokesperson, remarked that it would take an “incredibly brave government” to implement taxes on insurance or private education fees, which are currently GST-exempt.

Opposition finance spokesperson James Paterson has labelled a proposed GST increase as “brave”. Source: AAP / Mick Tsikas

“The Howard government recognised that people who spend their money on private health or private education are actually taking a burden off the public purse, and therefore it would be unjust to tax them on top of that,” Paterson told Sky News.

Here’s what’s being proposed and why it would impact your grocery bill.

What changes are being proposed?

The effect on low-income earners would be mitigated by one of two options under a GST-free threshold:

• Providing an annual $3,300 up-front payment to all Australians over 18 years old;
• Or exempting the GST on the first $22,000 in transactions when you swipe your registered debit or credit card at the checkout.

According to the Parliamentary Budget Office, the proposed changes would generate an additional $23.8 billion in revenue, even after the GST-free threshold is applied to all Australians.

Independent MP Kate Chaney believes the increased revenue could help address issues like bracket creep and inequality within the tax system. Source: AAP / Lukas Coch

Chaney told SBS News this leaves potential to fund “budget repair” or reduce income taxes for higher income earners.

How will the changes impact social inequality?

Both of which he thinks will be improved by the changes.