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

I haven't got the faintest idea what they believe on taxes, except for one thing—as the Minister for Revenue and Financial Services reminds us—which is that they should be higher. It's pretty simple: under Labor, the taxes are going on; under the coalition, the taxes are coming off. That's what it is—tax on under Labor; tax off under the coalition. That's the simple contrast. Before the budget, I made it very clear that the contrast and the choice that will exist for the Australian people before the election is: do they want to pay more under Labor? Do they want to pay more in more taxes? Do they want to pay more in higher electricity prices with their reckless renewable energy targets and their reckless emissions reduction standards?

Do they want to pay more for electricity? Do they want to pay more for private health insurance? They will pay more and more and more under Labor—for one simple reason: Labor cannot control their spending. They have no capability of controlling their spending.

We are pleased that our plan for lower taxes—and, in particular, personal income taxes—has today gained the support of this House, and we look forward to it having the support of the other chamber today. That will be not only a message from this parliament that the budget, which is a strong plan for a stronger economy, is passing this parliament but also a message to Australians all around the country that there's tax relief for all Australians. This is tax relief that is provided for by a strong economy—not by taxing some more, but by ensuring that all will receive that relief. We believe that every Australian, no matter what job they have or income they pay, should get tax relief, because they're all putting in.

It is true in this country, under our progressive system as we designed it and as we endorse, that those on higher incomes pay higher rates of tax, but, as the studies showed yesterday, the households that are in the top 20 per cent of income in this country pay more than 50 per cent of the taxes in this country—actually, it's closer to 60 per cent. That's how it is, because those who've done better and have greater means are ensuring that the benefits of hospitals, schools, pension payments, welfare payments and all of these can be provided for. That is largely done by them, and the burden of taxation is carried largely by those who do better—and they do so, pleasingly, in this country on the basis that they know that that's the fair society in which they live. But there's got to be a limit. There has to be incentive; otherwise, it's the image of that snake eating itself from the tail—

Opposition members interjecting—

Those opposite jest at this, but what they don't understand is that if you tax your economy too hard and too high it eats the economy. The shadow Treasurer used to believe this. He used to have as a mentor Paul Keating, who used to talk to him of aspiration and speaking to that aspiration.

See this speech in context