Finally, a Goods and Services Tax for Malaysia: A Comparison to Australia's GST Experience

Malaysia had two attempts since 2005 to introduce a consumption tax, and on the third and finally successful attempt, its Goods and Services Tax Act 2014 took effect from April 2015. Similarly, Australia’s path to a broad‑based consumption tax was hard fought, with three attempts to 1981 by then Coalition Treasurer, John Howard. The next proposal in 1985 by Paul Keating as Federal Treasurer failed through lack of internal party support and an unconvincing argument of tax efficiency over regressivity. The 1993 attempt by then Federal Opposition leader, John Hewson had a goods and services tax (GST) on the party platform, but he failed to win over the electorate. Australia’s GST was finally implemented by the Howard Government in 2000.