Julian Leeser (Berowra, Liberal Party) Share this | Hansard source

At the heart of Liberal tradition is the importance of the individual. The tradition manifests itself in economic policy in the following way: the individuals, not the government, know what is best for them; governments should take from the individual in the form of taxation only what is needed for essential services and no more; and governments should be frugal with public money for that money belongs to the individual and not the government itself. Therefore, when it comes to government, one of the ways in which Liberal philosophy manifests is in our desire to reduce the burden of regulation and taxation on the individual. We owe it to Australians to give them as much support as possible, while taking as little tax back as is responsible. The government is not a wealth creator, so nor should it be a wealth taker. This is not to diminish the significance of tax in funding services which are vital to our society, but our philosophy recognises that the role of government is to create the conditions in which the individual can succeed and do his or her best.

Former Prime Minister John Howard and former Treasurer Peter Costello led the country for nearly 12 years, winning a record total of four elections. Their popularity with voters is in large part explained by an economic agenda that advanced Australia. The introduction of the new tax system, with the GST as its central plank, was a fundamental measure that introduced a GST, reduced tax on income and shifted it to spending. Instead of punishing people for working and earning, Howard and Costello flattened the income tax system, energising the economy. Instead of taking more tax, Howard and Costello fought for a fairer tax system. This saw the provision of the largest tax relief in Australia's history, with cuts in 2003, 2004, 2005, 2006 and 2007. The Howard-Costello government eliminated Labor's $96 billion of government's debt. They oversaw a GDP growth rate of 3.6 per cent per year, on average, and an increase in average household income between 1994 and 2007 of 50 per cent. These achievements were not the results of higher taxes but, rather, the product of a fiscal program that actually cut taxes. The Howard government's success was based on its firm commitment to Liberal values. That's a tradition that continues today.

The motion from my friend, the member for Forde, reminds us that the Turnbull government has demonstrated a continuing commitment to reduce the tax burden on hardworking Australians. We've legislated tax cuts for middle-income earners so that they're not caught by bracket creep, lifting the $80,000 middle-income tax threshold to $87,000. We've also legislated small business tax cuts to their lowest level in 50 years: 27½ per cent for a business with a turnover of up to $25 million. They'll also benefit businesses with a turnover of $50 million by 1 July this year.

As a result of the government's policies, 3.2 million businesses, employing 6.7 million Australians, will pay less tax. There's more relief in sight when this rate is reduced even further to 25 per cent by 2026. We legislated instant asset write-offs for small business which saw 300,000 small businesses last year instantly deduct machinery and equipment from their tax bills. The temporary deficit levy, which sought to address Labor's damning debt legacy, has been removed as promised. We recognised the rising cost of living and responded with tax cuts, the National Energy Guarantee that will cut power bills and a housing plan that improves affordability. Everything we're delivering seeks to limit the burden on families and increase money in their pockets.

Labor, in contrast, is seeking to increase the burden on the taxpayer. The opposition leader said that business should expect nothing from a Shorten Labor government, and the proof is in their policy. Their policy punishes any small business with a turnover above $2 million, slugging them with a 30 per cent corporate tax rate, which is a full five percentage points higher than what we're seeking to cut over the next decade. Their policy punishes individuals with a top tax rate of 49.5 per cent, making the temporary deficit levy permanent. Their policies amount to $160 billion of new taxes, not just on income but on housing, electricity, small business and investment. There's a clear divide between a coalition committed to keeping taxes as low as they can be and an opposition that believes in trying to tax its way to prosperity. Australia's company tax rates compare unfavourably to jurisdictions like the United States, the United Kingdom and Singapore, among many others, but Labor has no plan to increase our competitiveness.

In my maiden speech I argued that Canberra collects too much tax, and I'm pleased to see the progress we've made in cutting taxes in the past 18 months. Promisingly, more tax relief is in sight for middle-income Australian families. Under past and present coalition governments, Australians have reaped the rewards for their hard work. There is more hard work for us as parliamentarians to do so that this may continue, but the people of Australia should know that the coalition government is committed to their cause.

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