The International Monetary Fund urges Albanese government to raise GST and tighten spending

The International Monetary Fund (IMF) has advised the Australian government to raise the goods and services tax (GST) and tighten spending in its annual check-up of the economy.

The Washington-based IMF issues an Article IV report for each member country, which assesses economic policies and outlook and provides recommendations.

In Australia's report published today, the IMF said the Australian economy was "gaining momentum" and forecast to grow to 2.1 per cent next year after recently returning to balance.

"The Commonwealth's fiscal strategy has been effective over the post-pandemic period, but if structural spending pressures intensify in the future, clearer fiscal anchors could help to safeguard fiscal sustainability," it said.

The IMF called for tax reform to boost the economy