Weatherill's GST proposal cops flack from community groups

COMMUNITY groups have slammed South Australia Premier Jay Weatherill's proposal for a 15% GST with 5% of that going to Canberra in return for a slice of the income tax pie for state governments.

Mr Weatherill floated the idea in a press conference yesterday as Federal Treasurer Scott Morrison canvassed potential options for a tax overhaul.

The Premier's proposal centres on increasing the GST by 5% to 15%, with the added income to go to the Federal Government instead of the states.

In a trade-off, Mr Weatherill proposed state governments should each share in a fifth of the total national income tax revenue.

South Australian Council of Social Services director Ross Womersley welcomed Mr Weatherill being "honest" about the need to raise more revenue to pay for services, but said the proposal would hit lower income earners more than the wealthy.

"Tax reform must be about increasing revenue as well as improving fairness and efficiency," he said.