Warren Snowdon (Lingiari, Australian Labor Party, Shadow Parliamentary Secretary for External Territories) Share this | Link to this | Hansard source

My question is to the Treasurer. I wonder if the Treasurer can advise us what compensation there would be for any increased and broadened GST to take into account the fact that fuel, groceries and fresh food are a lot more expensive—far more expensive—in remote communities and areas in my electorate than anywhere else in Australia?

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

It is a bit like the Prime Minister said yesterday, 'It's groundhog day' with these questions. I remind those opposite that the government has put forward no such proposal. The government has not outlined any sort of preferred option along the lines that he has suggested, and the government has responded to requests from the states and territories to provide them with responses and information. I refer the member again to the—

Ms Butler interjecting—

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

The member for Griffith is warned!

Warren Snowdon (Lingiari, Australian Labor Party, Shadow Parliamentary Secretary for External Territories) Share this | Link to this | Hansard source

experience of the Howard and the Costello government when they introduced a change to the tax system, and how they were able to ensure that Australians were better off that the appropriate adjustments were made at that time. That is the lived experience of this country when it comes to when a coalition government makes positive changes to our tax system that ensure people are not being held back. I draw to the attention of the House that 15 years ago, which was the time when those tax system changes were introduced—

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

The member for Griffith on a point of order.

Terri Butler (Griffith, Australian Labor Party) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. This has nothing to do with Lingiari.

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

The member for Griffith has no point of order. I remind her she is already warned.

Mr Mitchell interjecting—

The member for McEwen is now warned! You will not interject when I am making a ruling.

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

In making that reference to what occurred 15 years ago—which was the last time we had changes to our tax system that left Australians better off in a position where they could go forward with serious changes to the tax system—back then compared to now an average wage earner today is certainly earning two times more than they were 15 years ago. But guess what? They are paying three times more personal income tax. So they are earning twice as much, but they are paying almost three times as much in income tax. This is one of the things that is holding Australians back—Australians who are out there, who are working and who are saving and investing. What we are talking about is trying to change the tax system to leave people in that situation better off.

The average wage earner will go onto the second highest tax bracket next year, and what do we hear from those opposite? Nothing, absolutely nothing. On this side of the House we want to ensure we have a tax system that backs Australians. On that side of the House they just want to whack up taxes without any corresponding decrease in taxes because that is how they think they can address the budget challenge. And we know that is true because the shadow Treasurer has $60 billion of commitments out there and he only has $5 billion of revenue measures and savings measures to pay for them. He has to pay it 12 times over just to get back to a level playing field on where this government is now.

As I reminded the House yesterday, if we had stayed on the same spending trajectory as those opposite from 2012-13, this budget and the forward estimates would be around $80 billion in higher spending. That is their record.