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

My question is to the Treasurer. Isn't it the case that the two quarters following the introduction of the GST, in 2000, saw the worst six-monthly performance of the Australian economy in the last 20 years, including the global financial crisis. Will the Treasurer guarantee that increasing the GST will not lead to a further slowdown in economic growth?

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

I welcome the question because it enables me to go back over the coalition's record when it comes to changing the tax system. When we change the tax system, as I have said on a number of occasions today, we cut taxes—we do not just change taxes, we cut taxes. As a result, what that does is to lift the performance of the economy over time. It grows the economy. As a result, receipts will grow with the growth in the economy.

Those opposite believe that the way to deal with the budget challenges that the country faces is to just increase taxes. There is not a tax that they do not want to increase, and they are out there with the high tax cheer squad saying, 'Australia has a revenue problem. Australia has a revenue problem.' Every time those outside this place hear the opposition say that Australia has a revenue problem, this is what the opposition means: they do not think the government is taxing people enough, and if they had the opportunity, the opposition would increase taxes on the Australian people for no other purpose than to chase the higher and higher levels of expenditure that they have not been able to break their habit of pursuing. Their aspiration and ambition for spending is unmatched, and that is why they always want to go for higher, higher and higher taxes.

Ms O'Neil interjecting—

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

I remind the member for Hotham that she has been warned!

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

They raise the issue of what happened under the Howard and Costello government. They had ample opportunity to change all that. Despite the fact that they went to an election and said 'we think this is terrible', and all the rest of it, did they change it? Did they change one iota of it? Not one!

On this side of the House, if we go to the Australian people and we say that we are going to get rid of the carbon tax and we are going to get rid of the mining tax, we do it.

Opposition members interjecting—

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

The member for Gorton.

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

We follow through. What the Australian people need to know about those on that side is that they will huff and they will puff about these things, but if they ever have the opportunity they will not do anything because they are addicted to the tax revenues that fuel their higher aspirations for spending. On this side we will control our expenditure, as we are. Those opposite are happy to make commitments without being able to pay for one, but on this side we make sure that the budget washes its face when it comes to new initiatives. Whether it is for childcare or anywhere else, we make sure we put the measures in place to fund the changes we wish to make for the Australian people

Mr Brendan O'Connor interjecting—

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

The member for Gorton is now warned. The member for Sydney!

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

Those opposite have completely lost track of those important principles for managing the nation's finances.

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

I remind the member for Hotham again. She has now been warned twice. It is her final warning. I call the member for Flynn.