Any change to Australia's tax system to be progressive: PM

Australian Prime Minister Malcolm Turnbull said on Thursday that any change to Australia's taxation system would need to be progressive and one that "backs" everyday Australians to "work, save and invest".

Speaking at the Economic and Social Outlook Conference (ESOCON) in Melbourne, the prime minister flagged the need for a "grown-up discussion" about tax reform, which could include the first changes to the goods and services tax (GST) since the turn of the century.

"We are living in the most exciting times in human history. Free markets, globalization, long periods of peace and above all, the acceleration of technological change has produced economic and political transformations at a speed never seen before," Turnbull said.

As a result, Turnbull said Australians need to recognize the need for a modernized taxation system that allows workers, businesses and the government the opportunity to fully take reform on board.

"We need to have a grown-up discussion that policy goals, and remove any obstacles that are obstructing growth," he said.

"We need to be brave enough and smart enough to take advantage of these (modern opportunities)."

However, Turnbull said any proposed changes would have to be "fair", saying that it is important for all Australians to "share the burden" of tax.

"The object of the taxation system is to raise the revenue for the government to fund the services it provides, but it must by a system that backs the Australian people to work, save and invest, one that backs them rather than holds them back," Turnbull told the conference.

"Of course, any set of tax reforms must be fair, which is why picking one of the now venerable reform proposals in isolation to others is going to be misleading."

The Turnbull government has faced criticism for considering proposals that will leave higher class of Australians being better off under new tax laws compared to lower class Australians.

"Reform packages at the least must raise the needed revenue and share the burden fairly, in a way that incentivises business and employment," Turnbull said.

Turnbull said the government has plans to reinvest in Australian jobs, telling the conference it is focused on encouraging innovation, start-up businesses and bright minds to work in Australia.

"We will deliver next month a set of policies that focus on how we attract and retain, how we encourage and support start-ups and how we. as a government and a country, encourage a culture of innovation," he said.

"But any package of reform that is not seen as fair will not and cannot gain public support and simply will not succeed."

"The challenge for our government is to do everything we can to ensure that we enable Australians to do their best. Enable them to realize those opportunities and seize the future."

"This is a great era of opportunity. We are a great nation with a great future." Endit