Increasing the GST to 12.5 per cent could raise more than $14 billion a year, new modelling shows.

Consulting firm PwC has also found expanding the consumption tax to five exempt categories – fresh food, health, education, childcare and water and sewage – would raise another $21 billion.

Releasing its modelling on Tuesday, PwC said tax reform would be critical to recovering from the coronavirus-led economic recession, arguing the GST was ripe for the picking.