Extending GST to fresh food could be off the Coalition’s agenda, according to National Party sources.

The comments came as the Cabinet was set to debate the GST at its first meeting of the year on Thursday.

Nationals MPs on Wednesday said if the GST was applied to fresh food, farmers would be hit hard and low-socioeconomic constituents would also suffer, The Australian reported.

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“An impost on fresh food in Mosman will not have the same impact it would have in Broken Hill,” one Nationals source told the newspaper.

Treasurer Scott Morrison had previously stated that the GST would be exempt from health and education.

The government’s tax reform model looked like it would increase from 10 per cent to 15 per cent.

It had stated there would be cuts to personal and company income tax and low and middle-income earners would be compensated.