$15 billion health hit: Labor's GST warning

INCREASING the GST to 15% and extending it to health services and fresh food would slug Australians $15 billion a year and could drive people to eat more junk food, Labor warns.

Opposition health spokeswoman Catherine King says raising and extending the consumption tax to fresh food would deliver a "disastrous blow" of more than $9 billion a year.

She adds that a 15% GST charge on health would cost sick Australians more than $5 billion a year.

The calculations

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