GST shouldn't face fear tactics: ACT chief

ACT Chief Minister Katy Gallagher believes people should be able to discuss the GST without fear. Source: AAP

ACT Chief Minister Katy Gallagher believes people should be able to discuss the GST without fear campaigns.

The federal government insists it has no plans to change the GST in its first term but it will include the tax in a review.

Ms Gallagher said her Labor government hasn't formed a view on whether the rate of the GST should increase but it should be examined.

"You can't have a serious discussion about tax reform in the country if you're not going to have at least the GST on the table," she told reporters in Canberra on Thursday.

"If it can be had without political opponents running fear campaigns that would be good."

Her government faced a strong fear campaign on tax reform from the Canberra Liberals during the 2010 ACT election.

"We know how successful fear campaigns can be run," she said.

"But should that mean you don't have the discussion at all? I don't agree with that."

She would also like to see the review examine the GST's interaction with state taxes.

But the ACT wouldn't support changes to the redistribution process along a population basis because that would lead to the territory losing about $200 million a year.

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