Tanya Plibersek (Sydney, Australian Labor Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Treasurer. Given that the Australian economy is experiencing global volatility, low wages growth, falling consumer confidence, and a slowdown in China, has the government done any modelling on the impact on the economy of increasing the price of everything with a 15 per cent GST, and, if not, why not?

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

I thank the member for her question. She makes reference to some very serious issues that I know Australians are concerned about as they see the volatility that is occurring in the global economy and the volatility that we have seen in markets, particularly over the past month. I think that is a real cause for concern, particularly for independent retirees, who are most in the front line of a lot of the impacts we have seen happening in those markets. These times more than ever highlight the need to ensure that we do everything we can to strengthen our financial position, to ensure that there is stability in the government's finances, and not do things that place pressure on the government's budget position, as those opposite plan to do.

Ms Plibersek interjecting—

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

The member for Sydney will not interject through the answer.

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

I am not aware of the proposal the member for Sydney has talked about. I am not aware of a proposal to put a tax on everything.

Opposition members interjecting—

I am not. Those opposite seem to think that the consumption tax in this country is on everything. It is actually not on everything. What the government is doing is ensuring that we have a tax system that will be growth friendly. As the Prime Minister said, we are engaged in an open conversation with the Australian people and we will work through all the various options that are available.

But there is a litmus test on this, and at the end of the day the government has to be confident that any changes would be supportive of growth and jobs and would be conditioned to the economic environment, particularly globally, that we find at this time. So we are moving forward with strong plans to reduce the size of government expenditure as a proportion of the economy, as I have indicated, which has been well-received by the ratings agencies and recognised as being a credible path to ensuring that we are getting the budget under control.

Those opposite have one plan: that is, to raise taxes to pay for higher and higher spending. The one way you can keep taxes down in this country is to ensure that expenditure is as low as you can conceivably have it to provide the services that people in this country need and depend on. That is our plan. Our plan is to keep expenditure under control. The plan those opposite is to tax as high as they can to chase the spending that will forever go up, as occurred when they were last in government. They have learnt nothing.