Bernie Ripoll (Oxley, Australian Labor Party, Parliamentary Secretary to the Treasurer) Share this | Hansard source

I take great pleasure in speaking on this motion moved by the Independent member for Lyne, which recognises the need for comprehensive tax reform to maximise the standard of living of all Australians over the next 50 years. That is something that this government has been very committed to for a very long time, not only in government since 2007 but also when we were in opposition. He also encourages the Treasurer to release a 10-year road map for comprehensive tax reform as a stand-alone budget paper including reform considerations beyond the four-year forward estimates.

This is something we support. This is something we are currently doing. This is something that this government is committed to. It is a good idea and an idea that comes forward on a similar motion that was supported prior to last year's budget where a road map was produced—I have that here with me today and, hopefully, I will have enough time to say to a couple of things specifically contained in that road map. I am happy to speak on these matters because it gives government members an opportunity to highlight all the good things that have been done. If you listen to the opposition you would think that nothing had been done and that it was all negative. That is very far from the truth; it is just not the case. In fact, there are many things that this government has done in terms of a proven track record on tax and transfer reform. We understand the importance of a stronger, simpler and fairer system, without question, and that is why we commissioned a root-and-branch review of the tax system so that we would have a document that we could all go to, done by an eminent Australian, that would give us some guidance, as well as come forward with our own road map of where, as a government, we believe we need to move forward.

Since that time we have progressed nearly 40 measures advancing the recommendations of the tax review—not just a handful, but 40—40 significant measures that make an enormous difference to ordinary people. Many of those important reforms were detailed in the 10-year road map that we published after the last budget. Last year's reform road map provided a vision—a vision to the country—and it was a vision that promoted investment and productivity growth, where we simplified tax arrangements for small business and introduced loss carry-back to spur adaptation and innovation. We are encouraging investment in infrastructure over time and we are lifting the nation's savings by boosting the superannuation guarantee. These are not small matters. These are monumental reforms—reforms that have come after a generation of, perhaps, change and languish. It is a great thing that this Labor government was able to bring that forward. We have also tripled the tax-free threshold which means there are a million more Australians now that do not even need to fill in a tax return. I remember for a very long time ordinary Australians at the lower end of the income scale saying, 'Why shouldn't it be that there should be a higher tax-free threshold?' Well, guess what? This Labor government agreed. We shifted the tax-free threshold from just over $6,000 a year to just over $18,000, and we will progress that through to $19,500 in following budgets. That is significant. If you did just one thing out of the 100-plus recommendations and it was just that one, you would be doing pretty well as a government, and we did it.

We have also phased out a whole range of outdated barriers to participation, particularly workforce ones. So our vision for a fairer, more sustainable tax system is not just rhetoric. It is not just talk and reports. It is delivered. It is already there—including $47 billion worth of income tax cuts in the first three budgets of this government, at a time when we, like the rest of the world, were facing one of the most difficult global financial situations that anyone has ever faced, at least since the Great Depression. But this is a government that stumped up and did the right thing. We did the reviews and we followed through with significant reforms, because that will set up Australia to be a stronger and fairer place for all Australians.

We are going to do it again in this budget. As all budgets are, this is going to be tough. But we are going to do the right thing. We have also managed to pass the clean energy future package and a compensation package—something that the opposition when in government never did. When they increased a tax, they never compensated people or adjusted, particularly for people on lower incomes.

For Australia's 2.7 million small businesses, we introduced an instant asset write-off for each and every asset worth less than $6,500. This was a significant reform and makes a huge difference to small business. We also did the loss carry-back, which is extremely good for companies, and we have simplified small business cash-flow tax arrangements to make it easier for them. Also, the release of the tax review in 2010 was the start of a national discussion on tax reform that we have continued with the tax forum and ongoing consultations. Labor has always been committed to tax reform and helping business, ordinary people and companies alike. (Time expired)

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