Changes to GST proposed by the Productivity Commission would reduce the liveability of the capital city, the chief executive of the Canberra Business Chamber says.

On Wednesday a landmark report by the commission came to light, including recommendations for sweeping GST reforms that could cost the ACT $970 million by 2026-27.

Chief Minister and Treasurer Andrew Barr said his government opposed any changes that would hurt the territory. Credit:Sitthixay Ditthavong

Prime Minister Malcolm Turnbull was quick to scotch the recommendations, saying no jurisdiction would wind-up worse off as a result of GST changes.

Canberra Business Chamber chief executive Robyn Hendry welcomed Mr Turnbull’s comments as a sensible move in light of recent tax reforms in the ACT.