Daryl Melham (Banks, Australian Labor Party) Share this | Link to this | Hansard source

My question is the Minister for Climate Change and Energy Efficiency and Minister for Industry and Innovation. Will the minister update the House on the operation of the carbon price and related changes to the tax system for working people? What has been the impact of the carbon price on the economy and jobs so far?

Greg Combet (Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency) Share this | Link to this | Hansard source

I would like to thank the member for Banks for his question, because the carbon price has been operating now for nearly nine months. Despite all of the absurd, ridiculous and mendacious predictions from those opposite, the fact is that the economy is growing, jobs are growing and emissions are falling. In the first six months of the carbon price, emissions in the national electricity market in fact fell by 8.6 per cent. As we have heard already in question time, 71,000 jobs were created in the last month and 920,000 jobs have been created since Labor was elected to government.

Beyond that, the government uses the carbon price revenue and has done so to make significant tax cuts for low-and middle-income earners. We have done that by trebling the tax-free threshold from $6,000 to $18,200. The fact is this: that reform has freed up one million people from having to lodge a tax return and is providing tax cuts to over seven million people. In fact, 6.3 million people have received a tax cut of at least $300 a year.

But not everyone supports those tax cuts, of course. Last week, I was on a radio panel discussion with the shadow Treasurer. I asked him during that interview, 'Are you going to reduce the tax-free threshold?' He replied, 'Well, we've said that.' So let's get it absolutely clear: the Liberal Party will be increasing taxes on low- and middle-income earners; they will be reducing the tax-free threshold—

Mrs Bronwyn Bishop (Mackellar, Liberal Party, Shadow Minister for Seniors) Share this | Link to this | Hansard source

Madam Speaker, I rise on a point of order on the question of relevance. The precedent is that quoting opposition policies is not directly answering the question and therefore he is out of order and should be asked to either sit down or return precisely to the question.

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

The minister will refer to the question before the chair.

Greg Combet (Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency) Share this | Link to this | Hansard source

It is entirely relevant to the question. The fact of the matter is that the coalition will reduce the tax-free threshold—reverse the reform that the government made. They will increase income tax for over seven million people. The coalition will bring the lowest paid one million Australians back into the tax system. They will have to fill out a tax return and many of them will have to pay additional tax. It is a tax hike on over seven million people. That is coalition policy. There is no objection to it. That is the fact of the matter and the shadow Treasurer has confirmed it time and time again.

We have the opposition leader endeavouring to re-present himself to the community as a sensitive and caring character who understands the cost of living, but what rank hypocrisy it actually is, because he does not understand it at all. He is taking a policy position to the election to increase taxes for over seven million Australian people. I will tell you what: we do not mind campaigning on that issue.