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

In January the Treasurer said that fixing bracket creep was one of his highest priorities, saying:

… I'm quite passionate about it, because I think that's one of the things that is holding the Australian economy back.

Now, less than two months later, the government has walked away from income tax cuts. What is the point of this government? What has happened to the Treasurer's passion, and when will the government start governing?

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

I thank the member for McMahon for his question. He continues to speculate about the budget, and I invite him to come on 10 May and he can hear what the budget is and he will know what all the decisions are rather than poring over the speculation in the papers every day because he has nothing better to do. The government does believe it is important that you back the earners in this economy. I remain absolutely committed to the view that as the government we need to do what we can to ensure that we ease the burden on those who earn in this economy, whether they be income tax payers, be they small businesses, be they large businesses—be they anyone out there who is actually earning in this economy. Those opposite have a different approach. Those opposite are saying that those who want to go out there and take the risk and invest in a property for their future are the problem—they should be taxed more. They are saying the police and the nurses and the paramedics and the Defence Force personnel and all of those who they know are the predominant users of negative gearing should be taxed more. That mob over there say that because they cannot control their spending. On this side of the House we do believe it is important to reduce the tax burden on Australians, and we will do that wherever we can. We will target the resources we have to ensure that they go to the place best able to drive investment and support the transition of this economy. The one thing we will not do is we will not lead people on like those opposite did. I refer to the comments of the member opposite to Fran Kelly on my birthday—it was a birthday present! He said in 2010, when they were in government:

… the government has returned the Budget to surplus three years ahead of schedule and ahead of any other major advanced economy …

This apparently happened in some parallel universe in 2010. The member took the show on the road—he did not just say it here. When he was in Malaysia, addressing the sixth World Islamic Economic Forum, this is what he said:

By the middle of 2013, our budget will be back in surplus …

This is what the member opposite said, yet he wants to lecture this side of the House when it comes to fiscal management and he wants to lecture this side of the House on our commitment to reduce taxes. This is the government, on this side of the House, that got rid of the carbon tax, this is the government, on this side of the House, that got rid of the mining tax and got rid of the bank deposit tax of members opposite; this is the government that has reduced taxes, not increased taxes. We have delivered on our commitments to reduce the tax burden on Australians, and that is what we are about.