State Premier Jay Weatherill’s suggestion of possibly expanding the GST to include financial services would be too difficult to administrate, says Business SA.

The Premier said the move should be considered to cover the $80 billion in cuts to state health and education funding imposed by the Abbott government, with a recent assessment finding it was the only measure that wouldn’t punish low-income earners.

“So that’s one we want to advance further in discussions with the Commonwealth Government, to try and fill this hole that they created for us,” he told Sky News.

But Business SA chief Nigel McBride told ABC891 this morning that the reform would be difficult to administrate and was only a partial solution.

“It is a tax on economic activity … I think the real answer is going to be a complete overhaul of federal and state taxation rather than just picking off here and there.”