Rudd rules out ever increasing GST in Australia

SYDNEY - Federal Opposition Leader Kevin Rudd has ruled out ever increasing the rate of the GST if Labor wins the federal election later this year.

State governments today rejected a claim by federal Treasurer Peter Costello that they want the goods and services tax increased from its current rate of 10 per cent.

Mr Rudd said today there would be no increase to the rate of GST under a federal Labor government.

"That goes without saying," he told reporters in Sydney.

"Over my dead body would there ever be any increase in the level of GST."

Mr Costello is planning to use a meeting with state treasurers in Canberra today to demand they abolish stamp duties.

But Mr Rudd said the federal government should reform its own taxation system before it begins lecturing the states on tax reform.

"Last time I looked he was the highest taxing federal treasurer in Australia's history," he said.

"I would suggest that Mr Costello start his reforms at home and that is, with the way in which the federal government implements its own taxation policy."

- AAP