Andrew Laming (Bowman, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Would the Treasurer outline to the House how a new Labor tax on infrastructure would damage business investment and lead to higher prices for consumers across the Australian Capital Territory. Is there any risk of this proposal spreading to consumers right across the country?

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

I thank the honourable member for Bowman for his question and I can tell him that—

Chris Bowen (Prospect, Australian Labor Party) Share this | Link to this | Hansard source

Mr Speaker, I raise a point of order. If I understand the question, it relates to ACT government policy. I draw your attention to page 539 of House of Representatives Practice which states that previous speakers have ruled out of order matters in state parliaments or state matters. I also draw your attention to page 538 of House of Representatives Practice which rules out of order specific questions about the policies of other political parties.

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

I thank the member for Prospect. I make the point that the Treasurer was asked the question in relation to governments, not other parties. I believe that the question is very much in order. I call the Treasurer.

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

I was asked about taxes on infrastructure and what they will do to business investment. Obviously, a new tax on infrastructure in this country will discourage new investment in infrastructure. I am very interested in the point of order because the point of order was that I should not be asked about political parties’ policies, which confirms that this is ALP policy—a very instructive point of order. If I may say so, it is not the trap that Janice Crosio would have fallen into in this House.

Honourable Members:

Honourable members interjecting—

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

She pales into insignificance compared to you, Mr Speaker. But a new tax on infrastructure in this country will be an obvious disincentive to investment. And here we are in the ACT, where a new tax is now being proposed on all infrastructure for all utilities including broadband. So we have the Labor Party federally saying they want more investment in broadband, whilst it is Labor policy to tax that new investment if it goes in. And this of course is brought to you by the Stanhopeless government here in the ACT.

It is estimated that this new tax on infrastructure will add about $137 a year to consumer bills. I asked the federal Labor Party to dissociate themselves from this tax yesterday and the Canberra Times duly went to the member for Lilley and asked him to condemn this tax. And, according to the Canberra Times, Mr Swan said he had not seen the proposals and would have to have a look at them. Just so he can have a look at them, I table the letter from all of the telecommunications providers in the ACT to the Stanhope government protesting about this new tax. I also table the letter from Jon Stanhope of 23 November 2006 in which he defends his new tax on infrastructure. He says this: ‘Importantly, having taken into account all of the factors ...’, he is going to proceed. He says, ‘Indeed, the government has been very open in acknowledging that there will be some impact on ACT consumers as a result.’ In other words, he expects this new tax to be fully passed on to consumers.

So here we have federal Labor feigning concern about a rise in the consumer price index while state Labor introduce new taxes to be passed directly into the consumer price index. Here we have—

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!

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

federal Labor saying that what we need is new 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

in this country, whilst we have state Labor taxing new infrastructure in this country. Again, I call on federal Labor; I call on the member for Brand and the member for Lilley, and each and every other one of their small but dwindling faction, to come out and completely dissociate themselves from new taxes on infrastructure. It can be done very easily; it can be done by condemning the Stanhope proposal.

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 is warned!

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

It can be done by saying that the Labor Party calls on it to be removed and it can be done by giving a pledge that federal Labor will not be trying to replicate this new tax right around the country. The people of Australia know this: Labor stands for new taxes.

Joel Fitzgibbon (Hunter, Australian Labor Party, Shadow Assistant Treasurer and Revenue) Share this | Link to this | Hansard source

My question is also to the Treasurer. I refer him to the AWB’s $290 million kickback to the former Iraqi regime, a payment which was claimed as a tax deduction on his watch, and therefore was subsidised by the taxpayer to the tune of some $90 million. Is the Treasurer aware that, despite the fact that the taxation commissioner has now backed Labor’s claim that the tax act is in need of amendment, his Assistant Treasurer rejected Labor’s amendment to align the tax act with the Criminal Code when I moved it in this place on 27 February? Treasurer, will you now adopt Labor’s plan to ensure that no AWB style bribes can be claimed as a tax deduction in the future, or will you continue to support taxpayer subsidies for illegal bribes?

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

I thank the honourable member for his question. Of course, he completely misrepresents the Assistant Treasurer, as per usual. I completely repudiate what he said about the Assistant Treasurer. Can I also refer the honourable member to section 26-52 of the Income Tax Assessment Act 1997, which provides as follows:

You cannot deduct under this Act a loss or outgoing you incur that is a *bribe to a foreign public official.

It is quite specific. If anybody has attempted to deduct a bribe to a foreign official, it is in breach of section 26-52(1). The Commissioner of Taxation, who enforces the law, has the power to adjust any such tax and to impose penalties and an interest payment in relation to that. The Commissioner of Taxation has full power in relation to this matter. The question, unfortunately, is based on a false premise. I have full confidence in the Commissioner of Taxation to enforce the provisions of the Income Tax Assessment Act.