Trish Draper (Makin, Liberal Party) Share this | Link to this | Hansard source

My question is addressed to the Treasurer. Would the Treasurer advise the House of the benefits to state services from tax reform? Are there any other views on the benefits of tax reform?

Kevin Rudd (Griffith, Australian Labor Party, Shadow Minister for Foreign Affairs and Trade and International Security) Share this | Link to this | Hansard source

Mr Rudd interjecting

Peter McGauran (Gippsland, National Party, Deputy Leader of the House) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. I distinctly heard the honourable member make a disparaging remark about the Prime Minister, and I would ask him to withdraw it.

David Hawker (Speaker) Share this | Link to this | Hansard source

Which member?

Peter McGauran (Gippsland, National Party, Deputy Leader of the House) Share this | Link to this | Hansard source

The member for Griffith.

David Hawker (Speaker) Share this | Link to this | Hansard source

The member for Griffith will withdraw.

Kevin Rudd (Griffith, Australian Labor Party, Shadow Minister for Foreign Affairs and Trade and International Security) Share this | Link to this | Hansard source

To assist the House, Mr Speaker, I withdraw.

Trish Draper (Makin, Liberal Party) Share this | Link to this | Hansard source

My question is addressed to the Treasurer. As I asked before, would the Treasurer advise the House of the benefits to state services from tax reform? Are there any other views on the benefits of tax reform?

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the honourable member for Makin for her question. I can inform her that in 2000 as part of A New Tax System the government introduced the largest tax reform in Australia’s history, abolishing wholesale sales tax, bed tax, financial institutions duty, bank account debits tax, stamp duty on marketable securities and other taxes in return for the introduction of a uniform rate 10 per cent GST. Every single dollar of that GST goes to state governments. Every single dollar, by legislation, goes to state governments. Since 2000, $150 billion has gone to the state governments of Australia and of this South Australia has received $17.3 billion, including a $402 million windfall over and above what it would have received had it kept the old taxes and had they been adjusted in accordance with the growth. That is the basis of the South Australian economy at the moment, and that is what is underpinning government services in South Australia. So I was concerned to see the member for Makin send me a leaflet, which is now being circulated in South Australia on behalf of the South Australian Labor government, which claims:

The federal Liberals are collecting tax revenues and the Rann government keeps delivering quality services.

What does it say the tax revenue is that the federal government is collecting? GST. Let me make it clear that every last dollar of GST is being received by state governments and in South Australia in 2005-06 that is $3,394 million. It is projected to be $3,573 million the next year and $3,723 million the year after. This leaflet, which carries disgusting lies, is authorised by one D. Feeney, who I believe is a Victorian Senate candidate.

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

Who’s he knocking off?

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

He is in the anti member for Hotham cabal, in the pro-Conroy faction. I welcome the member for Hotham back today. I hope the doorknocking went very well! It is good to see you, and we hope to see you back here far more often! He is part of the Conroy-Marles-Shorten-Pakula disgusting factional group down there in Victoria and has moved across to South Australia, where he is running leaflets claiming that the federal government collects GST. I call on Premier Rann today to dissociate himself from Mr Feeney, to withdraw that leaflet, to apologise to all South Australians and to not go into an election on the basis of disgusting lies like that.

If Mr Rann, the Premier of South Australia, has a shred of honesty, he will have that leaflet withdrawn. I will make another offer. He could leave that leaflet out there and return $3,394 million to the Commonwealth government. We will give him the choice. He can keep the leaflet and send back $3,394 million or he can keep the $3,394 million and get rid of the leaflet. The choice is yours, Mr Rann. How about a bit of honesty in the South Australian elections?