Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Treasurer. I refer the Treasurer to his statement on ABC Radio National that the government will need to make very substantial savings to fund programs like the National Disability Insurance Scheme, massive increases to school funding and massive blow-outs on border protection costs. Given that the Treasurer claimed tax increases of $16 billion as savings in this year's budget, will he rule out further tax increases to pay for his big spending promises?

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

I thank the shadow Treasurer for that question, He certainly knows all about high-taxing government. He was a member of the highest taxing government in Australia's history. Tax to GDP peaked at 24.2 per cent under the Howard government. We are committed to keeping the tax-to-GDP ratio at or below the level that we inherited. The tax-to-GDP ratio is just 22.1 per cent in 2012-13. So I think by any measure we have demonstrated that we can put in place a very strong fiscal policy and that we can make the savings in our budget to fund our Labor priorities—and that is what we have been doing.

Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

Madam Deputy Speaker, I rise on point of order that goes to relevance. He was asked whether he would rule out tax increases.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The member for North Sydney will resume his seat. The Treasurer has the call.

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

We have a proven track record of making room for Labor priorities, such as our Paid Parental Leave scheme. Those opposite want to put tax up to fund their parental leave scheme. They have a commitment to jack up company taxes under the Leader of the Opposition, the shadow Treasurer and the shadow finance minister—the three stooges who are in charge of economic policy on that side of the House.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The Treasurer knows that he is not to use that reference. The Treasurer will withdraw.

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

I do withdraw. We on this side of the House will put in place—and we are putting this in place—very strict fiscal discipline. We have made the savings to fund Labor priorities and we will continue to do that. We will meet our commitment to keep the tax-to-GDP ratio below the level that we inherited from those opposite.

Of course, we know why we are getting these questions today. It is because the shadow Treasurer over there on breakfast television—

Mr Hockey interjecting—

Mr Pyne interjecting—

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

Member for North Sydney and Manager of Opposition Business, the Treasurer has the call.

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

The shadow Treasurer over there on breakfast television told tens of thousands of viewers of Sunrisehe was sitting next to the minister for the environment—that he had a $70 billion—

Mr Pyne interjecting—

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The Manager of Opposition Business will resume his seat. The Treasurer will return to the question before the chair.

Mr Hockey interjecting—

The member for North Sydney is warned.

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

We are bringing our budget back into surplus in 2012-13 and we are doing it because we have put in place expenditure restraints, the type of expenditure restraints you did not see from the shadow Treasurer over there or the shadow finance minister when they were in government.

Christopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | Link to this | Hansard source

Madam Deputy Speaker, I rise on a point of order. Under standing order 91(c), it is disorderly conduct to persistently and wilfully refuse to conform to a standing order. He is persistently and wilfully refusing to conform to the standing order on direct relevance.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The Treasurer will refer to the question before the chair.

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

I am. I am referring to taxation. I am referring to our commitment to keep the tax-to-GDP ratio below the level that we inherited from those opposite, who were the highest taxing government in our history. I am referring to our record of making savings to make room for our Labor priorities. I am also referring to the fact that there is a $70 billion crater in their budget bottom line, which is one of the reasons they have committed at this stage to jacking up the company tax rate. So there is a very clear contrast between the fiscal discipline we see on this side of the House and the clowns that are running economic policy on that side of the House. (Time expired)