The Federal Government could raise up to $30 billion a year through changes to the Goods and Services Tax (GST), even after Australia's lowest income earners have been compensated, a report says.

Key points: New report says GST hike could raise up to $30b a year

New report says GST hike could raise up to $30b a year Modelling by Deloitte rose GST to 15pc, allowed compensation for low income earners

Modelling by Deloitte rose GST to 15pc, allowed compensation for low income earners Report advocates cutting company tax rate to boost investment, wages

Deloitte Access Economics said it was hoping to add some urgency to the debate about tax reform by addressing some "misconceptions".

Deloitte Access Economics partner Chris Richardson said "of course" the GST could be raised without harming low income earners.

"Yes, if you raise more money from the GST the poor will be worse off, but that isn't the end of a conversation, that's the start of a conversation," he told the ABC's AM program.

The report modelled raising the GST to 15 per cent and also examined raising the tax to 12.5 per cent and broadening the base to include fresh food.

"We allowed enough compensation to make sure the poorest Australian families were actually better off, rather than worse off, and you were getting, under one scenario, an extra $30 billion a year," Mr Richardson said.

"Under the other scenario, an extra $20 billion a year. That's big bucks."

Political climate not helping reform, Richardson says

The report also advocated cutting the company tax rate as a way to boost investment, wages and living standards, even if the budget remained in deficit.

"In the last three-and-a-half years, living standards for Australians have been falling," Mr Richardson said.

"Now that's a longer span that we had during the global financial crisis.

"It's a longer period of falling living standards than we had in the recession of the early 1990s.

"It's time for Australians to come together and do something about their living standards.

"We know you can do that and we know that tax reform is the obvious way to do it, so let's deal with the excuses."

Mr Richardson said a broad package of changes to make the tax system more efficient could give the economy a significant boost but that the current political climate was not helping.

"The politics at the moment are really frustrating, as both sides happily throttle each other rather than focusing as much as they should on running the country," he said.

"You've got all these people running around saying the great reform age was the 1980s and perhaps the 1990s and we can't do that anymore — yes we can.

"You do a big enough tax reform package and you can generate a really substantial boost to Australia's living standards."