Karen McNamara (Dobell, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer outline the importance of keeping taxes low. What is the government doing to reduce the tax burden on hardworking Australians and help people to work, save and invest?

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Dobell for her question. Mr Speaker, you cannot tax your way to surplus. That is not how you achieve a surplus. The way you achieve a surplus is that you control your expenditure and you have a tax system that grows the economy, that supports the economy and that supports Australians and the decisions that they want to make to work more, to save more and to invest more, because they know if they work more, they save more and they invest more that our economy will be the beneficiary.

We know and I think all Australians know that the economy is going through a period of transition. There is volatility beyond our shores, and even here on occasion there is uncertainty. But what we know is that Australians are up to the job of working through this transition.

Mr Champion interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Wakefield is warned.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

We know that Australians will not be frightened out of prosperity by those opposite. They will not be frightened out of prosperity and they will not be intimidated by the fear politics of the Leader of the Opposition, who will give everyone something to fear, who will give everyone something to blame but who will give no-one anything to believe in, because that is the politics of the Leader of the Opposition. But, on this side of the House, what we are focused on is delivering a tax system that is going to encourage Australians. We are going to deliver a tax system that is not going to chase ever-increasing expenditure.

Mr Dreyfus interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Isaacs will cease interjecting.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

When we are able to be in a position of budget balance it will be because we were able to get expenditure below revenue. Those opposite will raise revenue and raise revenue to chase after ever-increasing expenditure.

We know that one of the big challenges that face us is that next year, in 2016-17, if you are on an average wage you will go into the second-highest top tax rate. That is where you will be. You will be paying the second-highest top tax rate if you are an average wage earner. This has happened one time before in recent memory, and, Mr Speaker, you will recall that that was back in 2000. That is when we had real tax reform, that is when we had real tax changes that supported people to go out and work, save and invest. This is our objective. It is to have a tax system that actually supports people—not a tax system that chases higher and higher government spending that we have seen from those opposite. We saw it from them in government and we have seen it from them in opposition.

What is the great lesson that those opposite have learnt in their years in opposition? Have they learnt that they should be spending less? Have they learnt that they should be taxing less? No. What they have learnt is nothing. That is the warning there for the Australian people. So, on our side of the House, we are going to focus on economic growth, because that is the thing that delivers jobs. What will deliver the jobs and the security of employment in this country is a tax system that supports Australians. (Time expired)