Ian Causley (Page, Deputy-Speaker) Share this | Link to this | Hansard source

My question is directed to the Treasurer. Would the Treasurer advise the House of the abolition of the sugar levy, which was designed to help the Australian sugar industry? Are there any tax proposals around at the moment which would lift taxes and hurt business and consumers?

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

I thank the honourable member for Page for his question. I can inform him that last week the coalition government announced the abolition of the sugar levy. The sugar levy was imposed to fund a $444 million reform package for the sugar industry. It raised $80 million towards that $444 million.

Lindsay Tanner (Melbourne, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Mr Tanner interjecting

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

Order! The member for Melbourne!

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

The abolition of the sugar levy, which was 3c a kilogram, will save users of sugar $28 million in the next year. I want to thank the member for Page and all of the others who represent—

Lindsay Tanner (Melbourne, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Mr Tanner interjecting

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

Order! The member for Melbourne continues to interject. He is warned.

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

sugar-growing areas for their representations in relation to the levy. The levy’s abolition has been received as great news for sugar growers and manufacturers. This is an example of the great policies of the coalition government.

There are other tax proposals around at the moment which should be striking fear into the hearts of business. One of them that does strike fear into the hearts of business is right here in the Australian Capital Territory. The ACT government has so mismanaged its budget that it has now announced a new tax relating to infrastructure on unleased ACT land. Companies which want to invest in new infrastructure, such as gas, electricity, water or telecommunications, will be hit with a new tax relating to the size of their infrastructure footprint. The more you invest, the more you will be taxed.

The rate to be applied per kilometre of infrastructure has not been announced, but the ACT government expects to collect $8 million in 2006-07, rising to $16.5 million in 2007-08. Who would think of introducing a new tax to tax, per kilometre, the installation of electricity, water or telecommunications? What sort of a government would do that? As the Daily Telegraph calls the Chief Minister of the ACT, ‘John Stanhopeless’ has thought up a tax on direct infrastructure. What a mockery this makes of the Australian Labor Party. The member for Lilley wanders around the country crowing on a daily basis about the need for more infrastructure.

Wayne Swan (Lilley, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

Mr Swan interjecting

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

Order! The member for Lilley!

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

On 9 November 2005—

Wayne Swan (Lilley, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

Mr Swan interjecting

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

The member for Lilley!

Wayne Swan (Lilley, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

Mr Swan interjecting

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

The member for Lilley is warned.

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

the member for Lilley said:

We need to ensure Australia’s corporate tax regime encourages investment in much needed national infrastructure.

So there he is, demanding a tax system to encourage investment in infrastructure, while the Labor government of the ACT imposes a direct new tax on every kilometre of infrastructure which is built.

The Leader of the Opposition is saying that we need national leadership on infrastructure, whilst the ALP is imposing a direct new tax on every kilometre of new infrastructure, including every kilometre of new cable or optic fibre which is required for broadband. If we are going to get national leadership in relation to infrastructure, the first principle ought to be this: condemnation of the ACT Labor Party new tax, a demand that it be withdrawn immediately and a guarantee from federal Labor that federal Labor will not be imposing new taxes on national infrastructure. If you want to know the difference between a coalition government and a Labor government, you have seen it in this last week with the coalition government out there abolishing taxes and the Labor Party introducing new ones on national infrastructure.