Australian politicians are discussing whether to increase the goods and services tax (GST) as polling shows more than 50% of voters oppose a rise.
The value-added tax of 10% is applied to the sale of most goods and services.
The federal government collects GST revenue, which is then paid to the states to fund services.
Monday’s Newspoll survey found 54% of participants would oppose a GST rise from 10% to 15%, while 37% would support it, leaving 9% undecided.
New South Wales Premier Mike Baird said a 5% GST increase could raise an extra A$30b ($21b; £15b) to help fund health and education.
“Raise the GST on the existing base, provide those funds towards the Commonwealth Government and give them an opportunity to improve the tax mix,” Mr Baird said in a video statement.
The Federal Treasurer Scott Morrison said the government’s tax plan would be revealed later in the year.
He also warned against going into a “”tax and spend cycle”.