Malcolm Turnbull (Wentworth, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer confirm that his department has been modelling increases to personal income tax, including a three per cent surcharge? Are any of these secret income tax increases still under consideration by him?

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

Here we go again with the fear campaign. It is so, so predictable. I have seen those reports today, and it is the case that it is longstanding government practice to not comment on any matters that may or may not have gone to cabinet. Insofar as there are some proposals in the paper today, they were not adopted. What is this all about? This is about those opposite who are so embarrassed by their vote against stimulus, so embarrassed about their opposition to the bank guarantee and the term funding guarantee that all they have got left is a grubby fear campaign. The government is looking to the long-term national interest, through the Henry review—a comprehensive examination of the tax system. I am not going to be in the business of ruling anything in or out, but the one thing I can absolutely predict is that there will not be an alternative fiscal policy put forward in this House by those opposite. What we will get is a daily diet of fear and smear, because they are masters of misjudgement. When their country needed them to show some unity and maturity in this House, where were they? Negative—they are completely negative on everything they do. A fear campaign is no substitute for a policy.