Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Treasurer. The Treasurer previously described compensation for the carbon price as a 'money-go-round'—basically they tax it all and then they hand it back out. Can the Treasurer explain what will happen when the government jacks up the GST?

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

I thank Captain Keynes for his question. The K-man of Australia politics.

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

The Treasurer will refer to members by their correct titles.

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

Once again, the opposition has been asking questions that are hypothetical. What the government is engaged in is an adult conversation with the Australian people, who are showing confidence in a government that has a clear plan to grow jobs and to grow the economy. That is what the debate is about. The debate is about growing jobs and growing the economy. This side of the House has a very strong record when it comes to ensuring that we have a better tax system for Australians, a better tax system that rewards Australians and backs Australians who want to be out there working and saving and investing.

We know that the last time there were genuine changes to our tax system it was the Howard-Costello government. What I remember is that those opposite when they had the opportunity did not reverse any of the changes that were introduced by the Howard-Costello government. I do not remember them going to an election and saying: 'No, we're going to put the wholesale sales tax back in. We're going to put those bed taxes back in. We're going to put the financial institutions duty back in. We're going to put back in all those stamp duties that were abolished as a result of the tax system changes that were introduced by the Howard-Costello government.' The debits, the taxes, the stamp duty on leases—all of these. I do not remember them, when they came to government, reversing the income tax cuts that were introduced by the Howard-Costello government, that were the product of tax changes. I do not remember them reversing any of the compensation measures that were put in place.

In fact, on this side of the House when we came to government while we did give the ultimate compensation on the carbon tax by abolishing it, we actually kept the compensation—

Mr Perrett interjecting—

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

The member for Moreton is warned.

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

mechanisms in place, which was good news for pensioners and those on fixed incomes.

So on this side of the House we have the form on tax system changes that leave the Australian economy better off and leave Australians better off, and ensure that our economy can grow. This is what this debate is about. It is about: how do we have a better tax system that encourages growth and jobs in our economy? On this side of the House we have a record of delivering on those results. On that side of the House, nothing. There was nothing.

Ms Butler interjecting—

We have doorstops of tax reform. That is all they ended up being: doorstops in the offices of those sitting opposite that produced absolutely nothing, because they did not engage in a serious dialogue with the Australian business community, with the welfare sector, with the public more broadly. What they did is they just gave up; they had nothing to do with it. They just kept spending and spending and spending, year after year after year. As I said before, if we had stayed on the same trajectory as their spending when we came to government, the cost to the budget and the budget and forward estimates would now be $80 billion more.

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

Just before I call the member for Watson. There are a couple of things I need to do. The member for Griffith continued to interject after being warned. She will leave under 94a.