Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Hansard source

Mr Deputy Speaker, I withdraw. Let me rephrase: the Labor Party has said clearly that this levy does not need to be raised to fund the National Disability Insurance Scheme. That's what the shadow assistant minister at the table has said. What is then the purpose of raising this levy? It has been done under the guise—the truth on the government's part—to pay for the National Disability Insurance Scheme. Those opposite do not support that purpose for this levy, but they want to increase the levy anyway. They're doing it in a bill that is designed to help people with disabilities, but they have no intention to use the money to help people with disabilities. So the glass jaw of the opposition on this has just been demonstrated and they have been called out.

But on top of that, it's bad tax policy. The effective marginal rate of tax that applies to how they propose to deliver this in their amendment would mean that in the absence of phasing arrangements a taxpayer might incur an additional tax liability of $435.39 on the first $1 earned above $87,000. That is an effective marginal tax rate of 43,539 per cent. It's a daft idea in the practice of policy, and it's a heartless idea in the absence of morality on the part of the Labor Party.

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