A GST increase or broadening the tax's base would be good for Tasmania, economist Saul Eslake says.
Tasmanian Farmers and Graziers Association has called for the rate to be increased from 10 per cent to 15per cent and to wipe out exemptions.
The farming body said in a 2011 submission to a senate inquiry into food processing that these changes would ease the declining tax allocation back to states and lead to elimination of inefficient state taxes.
Mr Eslake said GST changes were inevitable but not urgent.
"It will eventually be necessary to give state governments more and more stable revenue resources so they can meet what are likely to be growing demands for spending on health and age care ... without having to rely even more on they presently do on distorting taxes they have under their control," he said.
"My first preference would be that they expand the base of the GST by removing at least some of the present exemptions from it before increasing the rate of it.
"I suspect both of them will eventually be necessary."
Mr Eslake said Tasmania would benefit from both methods of GST revenue raising due to greater-than- population share and its above average proportion of low income earners who would be eligible for compensation.
The federal government excluded the GST from the 2007 Henry tax review but the tax will be included in a broader tax review that the Coalition has pledged to undertake if it wins government.
A state government spokesman said the government was open to discussion about tax reform but did not support a GST increase.
Changes to the GST require approval of all states.