Will Raising GST Save Australia’s Economy?

Victoria has faced its fair share of challenges—high taxes, affordability issues, and sluggish performance compared to other states. But is the tide turning? In this clip, economist David shares why Melbourne, having corrected and become more affordable, might now represent better value for investors compared to other markets. With strong population growth via migration and affordability relative to Sydney, Victoria could be on the verge of recovery. The conversation also takes a broader turn into Australia’s tax system. David outlines why raising the GST from 10% to 15%—with offsets for lower income families—could be a smarter alternative to stamp duty and unproductive taxes. He argues this would support growth, improve fairness, and reduce the risk of wealth leaving the country. Finally, the discussion highlights the importance of avoiding tax policies that stifle growth, the dangers of black markets from excessive taxation, and why Australia must “grow the pie” rather than overtax it. *Timestamps:* 00:00 – Melbourne’s affordability & value case 00:37 – Why Victoria may outperform again 01:09 – Migration & population growth driving recovery 01:23 – Big tax reform idea: GST from 10% to 15% 02:57 – Should GST apply to fresh food too? 03:36 – Global competitiveness & tax flight risk 04:04 – Lessons from tobacco taxes & black markets 04:45 – Why consumption taxes are fairer 05:26 – Other reforms: PRRT & cutting bureaucracy P.S. This is just a snippet from our 559 | What Do US & China’s Tariffs Mean for Aussie Property Investors? For the full scoop, check it out here 👉 https://thepropertycouch.com.au/ep559-us-china-tariffs-property-investors/ P.P.S. And feel free to send in your questions here 👉 https://thepropertycouch.com.au/topics/ We would love to answer them on the show! #MelbourneProperty #VictorianEconomy #TaxReform #GST #HousingMarket #ThePropertyCouch #Investing #Australia Melbourne property affordability, Melbourne housing recovery 2025, GST reform Australia, raise GST 15%, stamp duty vs GST, Victoria migration housing, Australian tax reform, David economist interview