Matt Thistlethwaite (Kingsford Smith, Australian Labor Party, Shadow Parliamentary Secretary for Foreign Affairs) Share this | Hansard source

In the lead-up to and in the wake of the last election, the Liberal Party made one of their principle policy priorities reform of our tax system. Two and a half years later, we are still waiting. We are still waiting for this government to announce one tax reform policy for the nation. Prime Minister Abbott and Treasurer Hockey promised tax reform; we are still waiting. Prime Minister Turnbull and Treasurer Morrison have promised tax reform; we are still waiting. This is a 'say one thing, do another thing' government that promised tax reform and has actually delivered tax increases. That is right: the inescapable fact is that when Labor left office tax was 21.4 per cent of GDP. It has increased steadily since that time. By 2018, government will be taxing at 23.4 per cent of GDP. That is an inescapable fact which hurts those opposite. Despite all their rhetoric about reducing tax and reforming our tax system, what have they actually delivered? They have delivered tax increases as a proportion of GDP. They have also increased government debt. They have also increased the budget deficit. Under them, the terms of trade have worsened and growth projections have flatlined. This lot are quite the economic managers!

When you pick up a newspaper these days and look at the headlines in respect of tax reform and this government's policies, you will see these words quite a bit: 'considering', 'looking at', 'on the table'—could, would, should! Two words that you will not see in a headline about tax reform and this government are 'decided' and 'doing'. They are two words that are absent from the rhetoric when it comes to this government. Now it has decided to float the idea of the GST. Let us not forget that Prime Minister Abbott said before the last election he would never, ever increase the rate of the GST. So what does he do when he comes to government? He gets the Premier of New South Wales, Mike Baird, to float the idea of increasing the GST. What a cowardly way to do policy in Australia—to get the leader of the state Liberal Party to go out there and float policies on your behalf. Talk about a conviction politician!

Then, of course, Prime Minister Abbott was rolled by the new Prime Minister, Malcolm Turnbull, who, in his first media conference, made new economic leadership a principle objective of his new government. New economic leadership is what he promised for the Australian people. The Australian people are asking: where is this new economic leadership that was promised by the new Prime Minister? The Australian people are still waiting. Both Prime Minister Turnbull and Treasurer Morrison put the issue of the GST on the agenda. I think it is worth reminding people of that. It was not the members on this side of the parliament that put the GST on the agenda. It was those on that side, and it was people like Barry O'Farrell, Mike Baird, Gladys Berejiklian, Scott Morrison, the new Prime Minister and the old Prime Minister. They are the ones that put this issue on the agenda.

They actively advocated for increasing the GST. They started talking it up. They started talking about the additional revenue that could be raised and the cuts that we could have in income and company tax. They got all their state leaders to get on board and to get out there and talk up the increase of the GST or the broadening of the base. They got the business community onside and asked them to go out and start talking about the GST, and then they dropped it—or we think they dropped it. Some say they have dropped it, but then again, maybe it is still on the table or in the mirror that they are looking into. We do not know, and that is the whole point of this government.

I thought it was quite insightful when Peter Hartcher wrote on the weekend:

What is the point of Malcolm Turnbull …

What is the point of the change of leadership, when the new Prime Minister promised economic leadership but has delivered nothing? In contrast, Labor has a fully costed set of plans for Australia involving cracking down on multinational corporation tax-shifting, involving new taxes on superannuation earnings above $75,000 and an increase in the tobacco excise, consulted, debated and decided—a clear plan for tax reform for Australia.

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