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

My question is to the Treasurer, and refers to his answer just then on implementing the recommendations of the Murray inquiry into financial systems.

Mr Ewen Jones interjecting—

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

The member for Herbert is warned!

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

Is the Treasurer aware that the Murray inquiry found in relation to negative gearing and capital gains tax discount:

Reducing these concessions would lead to a more efficient allocation of funding in the economy.

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 member for that question. The government has given a comprehensive response to the Murray review, which is set out on the public record. What this government has done, as I have just said, is to respond to those measures by introducing laws, which are have been passed in the parliament. We can continue to consider those responses that were outlined and the measures that now need to be taken.

In relation to the issues on capital gains tax, I want to draw the member's attention to things that we have done on capital gains tax. In the National Innovation and Science Agenda statement last year we provided new tax breaks for early-stage investors in innovative start-ups. That also includes 20 per cent nonrefundable tax offsets based on the amount of their investment, as well as a capital gains tax exemption.

Dr Chalmers interjecting—

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

The member for Rankin will cease interjecting.

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

This government is cutting taxes. In fact, we have already cut some $20 billion in taxes over the last 2½ years. We gave small business a tax cut to 28½ per cent. We introduced the instant asset write-off. We abolished the carbon tax. We abolished the mining tax. In the national innovation statement we introduced the capital gains tax exemption for innovative new start-ups.

On this side we believe that Australians are better off when you have lower spending, which means that you can have lower taxes. That is our plan. We want to reduce the tax burden on Australians. Those opposite seem to think the policy debate in this country is a race to see who can raise taxes the highest. We are not in that race. We have no interest in being in a race about raising taxes. Those opposite want to raise taxes to spend more money.

Mr Brendan O'Connor interjecting—

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

The member for Gorton is warned!

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

The only reason they want to raise taxes is so they can spend more money. That is the agenda of those opposite. As we go to this election, the Australian people know that their agenda is not to lift growth but to lift tax and that our agenda is to get spending as low as we can and to manage the growth in expenditure going forward so that we can ensure Australians can have the lower taxes that they need. Australians are going to work every day to pay tax on what they earn, and those opposite seem to be completely oblivious to the concerns of average Australian taxpayers, who are going to have to pay more and more tax on what they earn. Those opposite think that those Australians are the problem. They want to rip away from them a once-in-a-lifetime opportunity to invest in a property so that they can get themselves ahead.

Ms Plibersek interjecting—

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

The member for Sydney has been warned! That is her final warning.

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

Nurses, police officers, teachers—all of those who do negative gearing—those opposite want to rip that away from them; those opposite want them to pay more tax so they can just spend and spend and spend.