Joel Fitzgibbon (Hunter, Australian Labor Party, Shadow Minister for Agriculture) Share this | Link to this | Hansard source

My question is to the Prime Minister. Prime Minister, you say you want to have a conversation about taxation in Australia, and that is your right. So let's talk about modelling by AUSVEG, as reported in The Weekly Times, which shows that a GST on fresh food would lead to a five per cent reduction in vegetable production. When will you front up to a conversation with Australia's producers and growers about your plan to hit fresh food with a 15 per cent GST?

Mr Pasin interjecting—

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

The member for Barker will cease interjecting.

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

I thank the Prime Minister for the opportunity to respond. They just do not get it—this is the problem. They continue to come to the dispatch box and raise proposals that have not been put forward by the government. Maybe they are referring to scenario 3, which was modelled by the former Treasurer and member for McMahon and the Labor Party when they were in government, for increasing the GST and broadening its base. Maybe that is what they are referring to.

The difference between those on this side of the House and those on that side of the House when it comes to having a discussion about tax is this: on this side of the House we know that you change the tax system to support growth and jobs in the economy.

Ms Owens interjecting—

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

The member for Parramatta is now warned.

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

That is why we did it back in 2000 under Prime Minister Howard and Treasurer Costello. It was done to promote growth and to promote jobs—and that is what it did. But we found out this week from the Leader of the Opposition what the objective of those opposite is when it comes to tax. He said: 'In terms of tax reform, we're proposing a way of finding revenue.' For those on that side, the tax debate is all about how they can jack up taxes to raise revenue. That is why they want to bring back the carbon tax. They want to do that because they want to raise revenue that would cost jobs. That is why they want to bring back the mining tax. They want to raise revenue without providing compensation, tax cuts or any of that. They just want to jack up taxes to raise revenue, because that side of the House they think the way to balance a budget is to raise taxes—well, not on this side of the House. On this side of the House, we balance the budget by controlling expenditure and ensuring we have growth.

But now we have their latest proposal: the ciggies tax. The party who brought us the tax that raised no revenue—the mining tax—are now the party who think they can deal with those issues by putting a tax on a shrinking base. Not only that, while they come here and complain about the welfare impacts—

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Mr Speaker, I raise a point of order on direct relevance: the question was about tax on vegetables.

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

There is no point of order. The Treasurer is in order. He is still on the topic of tax.

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

They express concerns for the vulnerable. On the ciggies tax, I go to none other than the member for Ballarat. When asked if the tobacco tax would hit low-income earners, she said: 'What we're trying to do with this measure is actually look at—we know that it will hurt, um, people on low incomes.'

Ms Plibersek interjecting—

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

The member for Sydney will cease interjecting.

Mr Hawke interjecting—

The member for Mitchell will cease interjecting.

Joel Fitzgibbon (Hunter, Australian Labor Party, Shadow Minister for Agriculture) Share this | Link to this | Hansard source

Mr Speaker, I seek leave to table statements from the members for McMillan, Gippsland and Murray expressing concern about the imposition of a GST on fresh food.

Leave not granted.