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

I join with you, Madam Speaker, in welcoming my constituent and the last Labor Prime Minister to deliver a surplus. Well done!

Honourable Members:

Honourable members interjecting—

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

If the member for North Sydney keeps pushing his luck he will not get his question.

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

Come back!

Honourable members interjecting—

My question is to this Prime Minister. I refer to the Prime Minister's statement yesterday that the amount of government revenue is 'far lower than expected by Treasury'. Given that revenue this year is $37 billion larger than last year, and given that tax revenue is $18 billion higher than Treasury forecast in the darkest days of the GFC, how can the Prime Minister honestly claim that her surplus promise is broken because the government is not collecting enough tax off Australians?

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Let me explain this to the shadow Treasurer so that he can follow it. First and foremost, to the shadow Treasurer, let me explain to him: (1) as a percentage of GDP this is a far lower taxing government than the government he served in as the Work Choices minister; and (2) of course in my statement I was referring to the revenue write-downs against Treasury predictions. I refer him to the Mid-Year Economic and Fiscal Outlook. He may not have obtained a copy. He may not have read it but I suggest that he does.

I am referring him to the revenue write-downs made transparent at that time by Treasury in its forecasts and referred to publicly by the Treasurer, Wayne Swan. I also refer him to the undeniable fact that as a percentage of GDP, per unit of GDP, revenue to government is at its lowest percentage now since the early 1990s and that recovery of revenue is happening more slowly than Treasury predicted. These are facts.

I take it from this line of questioning that the opposition believes itself to be in a position to say that had it governed during the days of the global financial crisis it could have produced a surplus budget every year, notwithstanding the global financial crisis, notwithstanding what was happening in the global economy, notwithstanding the hit to revenues that flowed and the hit to revenues we are continuing to see flow.

Well, if the shadow Treasurer and the Leader of the Opposition truly think that that is the position they would have found themselves in if they were in government, and given that that is all dealing with past figures, there is no reason at all why tomorrow they could not walk into this parliament and table what they would have done in that budget situation to show surpluses across those financial years. Every fact, every figure is at their disposal. Let's not have the spin, the hysteria and the questions. Just come in tomorrow and table the document. And if they do not do that then let's not hear any of this nonsense ever again.

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

I have a supplementary question for the Prime Minister. In this 2009 budget paper it says, 'Expected revenue in 2012-13 is $321 billion.' This year it is projected to be $339 billion. Prime Minister, do you believe that Australians are not paying enough tax?

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I remind the shadow Treasurer that it is 2013. So I am not sure why he is wandering around with 2009 figures. Maybe it is time to catch up. It is 2013 and apparently he last thought about these issues in 2009. Well, there are a few years of work to catch up on. That is the kind of performance we see only too often from the shadow Treasurer. Actually thinking deeply about policy, actually producing figures and costings, actually pointing to savings is apparently beyond him. So I say to the shadow Treasurer: it is not 2009; it is 2013. Get yourself the most recent information. And I say to the shadow Treasurer, too—

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

On a point of order, Madam Speaker: The Prime Minister could at least try and answer the question as to whether she believes Australians are paying too much tax or not enough tax.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I was just coming to the question of tax. I am very pleased that this government has turned in a performance of less tax as a percentage of GDP than the Howard government did. Yes, the Howard government was high taxing—yes, it was. Yes, the shadow Treasurer was part of that high-taxing government and at the same time was ripping people's wages to shreds through Work Choices. That is the legacy of the shadow Treasurer and the Leader of the Opposition. Fortunately, between a new workplace relations system of decency and fairness and a lower taxation system as a percentage of GDP, we have done better for families around the nation and I am proud that we have.