Labor and coalition rule out GST hike The federal government has warned Tony Abbott would hike the GST rate if elected as prime minister. FOR all their bickering, Labor and the coalition appear to be unified on one policy front. Both have adamantly ruled out hiking the GST rate if elected in September, with Labor claiming it would hurt poorer Australians and the coalition passing it off as an issue for the states. In his budget reply speech on Thursday, Opposition Leader Tony Abbott promised to deliver a tax "white paper" within two years of winning government. Many within Labor interpreted this as code for a plan to increase the 10 per cent rate of the GST, but Mr Abbott declined to say whether the review would include a fresh look at the tax. Liberal frontbencher Michael Keenan on Saturday said it would be "odd" if the GST wasn't considered in the coalition's white paper, but flatly ruled out any plans to raise the tax. But Labor MPs weren't convinced, with Treasurer Wayne Swan saying it was clear plans to tinker with the GST were "very squarely on the agenda" for the coalition. Broadening the GST base to cover food, or hiking the tax overall, would be "terribly unfair" to those low and middle-income earners in Australia whose standard of living would be hit most, he said. "The Labor Party... would never favour increasing the rate or the base of the GST as many Liberals are now talking about," he told reporters in Brisbane on Saturday. Labor cabinet member Bill Shorten said it was "crazy" the coalition was planning to hike a measure that would hurt families while allowing mining companies to get away with paying less tax. But opposition frontbencher Christopher Pyne poured cold water on the claims, accusing Labor of doing anything to create a "desperate scare campaign." "The coalition has absolutely no plans to change the GST," he told reporters in Adelaide. It's a matter for the states and territories if they want to argue for it, it's not a matter for the coalition.