<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Australian government is being urged to weigh up raising the GST, scrapping superannuation concessions and </span><a href="https://www.9news.com.au/national/capital-gains-tax-discount-parliamentary-budget-office-analysis/4fc12d1b-e962-401e-b1ba-0b15d68ba03b" rel="" target="_blank" title="capital gains tax"><span>capital gains tax</span></a><span> discounts as measures to offset high-spending states and territories.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>They are among the recommendations from the International Monetary Fund (IMF) in its latest report card on Australia's economy, released overnight.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The fund warns </span><a href="https://www.9news.com.au/national/jacinta-allan-victoria-1000-public-service-jobs-to-go-in-huge-budget-cuts/3aed8f6d-4a57-4006-a356-9334d91e4047" rel="" target="_blank" title="high debt levels incurred by Victoria"><span>high debt levels incurred by Victoria</span></a><span>, the Northern Territory and other high-spending jurisdictions could impact federal government borrowing capacity because the Commonwealth is regarded as a "de facto guarantor of state debt" by ratings agencies.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/capital-gains-tax-discount-24000-millionaires-pocketed-half-the-gains-oxfam-australia-finds/d08e4b7a-1814-460c-b697-654ecd3cd517" rel="" target="_blank" title="Nearly half of the capital gains tax discount went to just 24,000 people"><strong><span>Nearly half of the capital gains tax discount went to just 24,000 people</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Spiralling construction costs in major state infrastructure projects risks more credit rating downgrades and the threat of higher interest rates.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The IMF report says Western Australia is the sole state or territory where debt-per-resident-levels are not expected to rise.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Within three years, Victoria's gross debt level is forecast to smash the $240 billion level, or $3000 for every person in the state.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/imf-urges-raising-gst-to-bail-out-big-spending-states/ede1a658-562e-4bf4-a68f-fefa7765bd1a" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>To combat the threat, the IMF says Treasurer Jim Chalmers should consider shaking up the country's tax system to make it more efficient, equitable, and sustainable.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Options include an increase in Goods and Services Tax (GST) rate and removal of GST exemptions, offset by changes to Corporate Income Tax (CIT) settings ... Tax breaks, including superannuation concessions and capital gains tax discount, could be phased out to generate a more equitable and efficient tax system."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>EXPLAINED: </span></strong><a href="https://www.9news.com.au/finance/gst-why-are-there-calls-to-change-it-australia-tax-system-explained/90b4e02e-8aec-4a15-8727-e2ba31209a98" rel="" target="" title="Politicians don't want to talk about it, economists want to overhaul it. So why are there calls to raise the GST?"><strong><span>Politicians don't want to talk about it, economists want to overhaul it. So why are there calls to raise the GST?</span></strong></a><span></span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While </span><a href="https://www.9news.com.au/finance/gst-why-are-there-calls-to-change-it-australia-tax-system-explained/90b4e02e-8aec-4a15-8727-e2ba31209a98" rel="" target="" title="raising the GST from the flat rate of 10 per cent would offer a more stable government revenue source"><span>raising the GST from the flat rate of 10 per cent would offer a more stable government revenue source</span></a><span>, many economists warn it would impact lower-income Australians.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The GST raises about $80 billion a year for the federal budget, although the rate of 10 per cent is lower than that of many similar economies.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Meanwhile, the capital gains tax discount is forecast to </span><a href="https://www.9news.com.au/national/capital-gains-tax-discount-parliamentary-budget-office-analysis/4fc12d1b-e962-401e-b1ba-0b15d68ba03b" rel="" target="" title="cost the budget almost $250 billion over the next decade"><span>cost the budget almost $250 billion over the next decade</span></a><span>. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Looking at the overall Australian economy, the IMF gives a thumbs up to the performance of the federal government.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It praised the economy's "soft landing" by gradually reducing inflation without sparking a recession.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/north-ryde-kidnapping-sydney-chris-baghsarian-police/3cb2fb83-2b2b-4eda-b451-4bcb90ef4480" rel="" target="_blank" title=""><strong><span>'Grave fears' for Sydney grandfather after 'mistaken identity' kidnapping</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Chalmers, who is due to hand down the federal budget in May, said today the IMF report was a "powerful endorsement" of the government's economic policies, but conceded more work was needed.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"With these kinds of reports, government won't pick up and run with every idea," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"A lot of it is consistent with our thinking and with our economic reform agenda</span><em><span>,</span></em><span> which we have been rolling out since the reform round table in September last year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We know there is more work to do."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>