OECD calls on Australia to raise GST, lift jobless benefits and review the Reserve Bank to deal with economic fallout from COVID

The federal government has been urged to embark on major tax reform, including increasing the goods and services tax to help pay down massive debt from coronavirus relief measures, which were introduced to save the economy from the pandemic. Key points: The OECD wants Australia to increase the GST and unemployment benefits and review the RBA's economic forecasting Treasurer Josh Frydenberg has rebuffed the call for a increase in the GST but says he is open to a review of the central bank OECD calls on Australia to improve environmental innovation in the fight against global warming In its latest review of the Australian economy, the Organisation for Economic Co-operation and Development said the GST should be raised to take the burden off income and company taxes. The OECD agreed with forecasts from the Reserve Bank and leading Australian economists that the strict lockdowns in New South Wales and Victorian were likely to see the national economy shrink over the current September quarter. The Federal Treasurer said he would consider a review of the Reserve Bank of Australia, after the OECD report said it failed to meet key economic targets and forecasts in recent years. OECD calls for environmental innovation The OECD also called on Australia to step up its efforts to limit temperature rises in the fight against climate change.