Still plagued with bad taxes: Oakeshott

The federal government has failed so far on a commitment to negotiate with the states to move away from inefficient taxes, Independent MP Rob Oakeshott says.

Following a meeting with Treasury officials in Sydney on Tuesday, Mr Oakeshott said he remained of the view state-based royalties were inefficient and a competent profit-based resource rent tax was needed.

"How we transition from one to the other remains unresolved," Mr Oakeshott said in a statement on Wednesday.

"For me, this is a particular concern because my vote for the MRRT (minerals resource rent tax) was conditional, in writing, on the commonwealth negotiating with the states to transition away from the inefficient royalties."

He said that hadn't happened and remained an undelivered commitment of the federal government.

However, Mr Oakeshott said the soon-to-be-released GST distribution review and the state tax reform plan should be seen as an historic opportunity for a commonwealth-state agreement on removing inefficient state taxes.

Shadow treasurer Joe Hockey said that under no circumstance would the coalition support changes to the mining tax.

"We want to get rid of it," he told reporters in Parramatta, in Sydney's west.

"It was a stupid tax in the first place. It hardly raises a dollar."

Mr Hockey also said Mr Oakeshott was "making it up" when he said senior MPs from both sides of politics privately agreed with him that there should be a review of the GST's rate and coverage.

"I am the guy who is in charge of coalition tax policy. I am saying emphatically - emphatically - that we are not going to change the GST," Mr Hockey said.

He said the fact that partners of the Labor Party coalition were raising an expansion of the GST or an increase in the GST said everything about the default position of the Labor Party, the Greens and the independents.

"That is to tax people more - whether it be the mining tax or the GST."

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