Raising GST is on the Government's agenda.

Prime Minister John Key has unveiled tax plans in his much talked about address to Parliament this afternoon. He has ruled out any moves on a land tax, capital gains tax, or a special tax aimed at residential investment properties.

Mr Key says the Government is considering a modest increase in GST to no more 15 percent. He says no final decisions have been made, with more work on tax reform yet to be done - but says the tax system is broken and needs fixing.

Additional money raked in through a GST rise would be re-channeled to personal income tax cuts across the board and assistance for beneficiaries, pensions and the low paid.

The Prime Minister has indicated changes to the Working For Families scheme. He says the Government's main concern with the scheme is the possibility people can earn a lot of money, but do so in a way that means they are still eligible for Working For Families support payments.

Mr Key says that is against the intent of the policy, which is aimed at supporting genuine low to middle income earners, so the Government is looking at how to make Working For Families fairer.

Reforms to the benefit system will include adjustments to the criteria and testing regimes for the Sickness Benefit, to ensure it only goes to those people who are too sick to work.

Mr Key says strict reapplication rules will also be introduced for the dole to prevent people from staying on it for too long between jobs.

New Zealand's mining industry is to be the focus on new Government initiatives to build the sector. Mr Key says New Zealand's natural resources have the potential to significantly raise economic performance.

The Prime Minister claims mining currently uses just 40 square kilometres of land and has export values of $175,000 a hectare. He says mining is an extremely valuable land use and he expects moves will be made to follow current proposals to open up some Conservation land to mining.

Mr Key says the Government is also determined to modernise the country's secondary schools. He says legislative and funding changes will be made to ensure secondary-aged pupils have greater opportunities to learn trades and practical skills.

Mr Key says it will empower young New Zealanders to enter further training or employment once they leave school.

To read John Key's full speech click here.