The Australian Taxation Office reportedly wanted the Coalition to broaden the application of the GST on food, but the government has firmly rejected it.
The Sydney Morning Herald reported over the weekend that ATO officials argued the GST currently applied to foods was confusing, and urged the government to consider changes to the way the tax is implemented.
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Those changes included broadening the GST to bring it in line with beverages, which are automatically taxed unless specifically listed as being GST-free.
It specifically pushed for foods like pre-prepared salads and brioche hamburger buns to have GST imposed on them.
The ATO denied to News.com.au that it was planning to lobby the treasurer to extend the GST, with a spokesperson telling the publication that the proposals had not progressed that far.
"The ATO’s role is to administer the tax and super systems, and not to advise on policy," he told News.com.au.
A spokesperson for Treasurer, Josh Frydenberg, said the government was focused on lowering taxes for Australia, and would not be making any changes to the GST.
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