The Government will introduce a new tax to help pay for rail projects, and the new tax will be paid on the value of goods and services rather than on the cost of goods or services.
The Government says the new rate is part of its long-term economic strategy to support Australian businesses and businesses with small businesses.
The new tax, due to be introduced in 2017, will be set at 25 per cent.
It is expected to save the Government between $500 million and $1.5 billion a year.
The rate is expected be reduced to 12 per cent when it is introduced in 2018.
Mr Morrison said the Government was not making a profit from the GST, which was a major focus of his leadership campaign.
“The tax is not a revenue generator,” he said.
“It is not an economic driver, it is not for productivity.
It’s a cost generator.”
GST rates will be reduced for businesses with less than $5 million in annual revenue Source: ABC News | Duration: 3min 45secTopics:government-and-politics,government-week,economy,business-economics-and/or-finance,wealth-and:crown-of-tasmania