Julia Banks (Chisholm, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Tony is a constituent in my electorate of Chisholm. His income is $32,000 from his self-managed super fund. Under Labor's retiree tax, he will lose $5,000. Treasurer, how will Labor's retiree tax hurt Australians like Tony in my electorate, and what is the government doing to guarantee the essential services that Australians rely on?

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

I thank the member for Chisholm for her question. She is right that under the Labor Party Australians will pay more: they will pay more in higher taxes; they will pay more in higher private health insurance premiums; they will pay more in higher electricity bills; they will pay more in higher rental costs for their housing; and they will pay more as retirees, with Labor's cruel retiree tax. And Tony is no different to Alan in the electorate of Canning. He will be paying $10,000 more in the refunds, the tax refunds, he will lose as a result of what the Labor Party proposes to do. It's like others in all of the electorates on both sides of the House: people whose only crime, according to the Labor Party, is that they have gone out there and bought shares and those shares are providing them with income to pay the electricity bill, to pay their medical bill—thousands of dollars that they rely on because they went and bought shares. The Labor Party says that this is a loophole.

Mark Dreyfus (Isaacs, Australian Labor Party, Shadow Attorney General) Share this | Link to this | Hansard source

It is a loophole.

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

It is a loophole—it's said! It is a loophole! That is what those opposite have said. Maybe they can explain this to me: why is it okay for someone on a high income to get the full value of the tax benefits of franked dividends? It's okay for them.

Opposition members interjecting—

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

The member for Isaacs and the member for Bendigo!

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

You can be earning $500,000 a year and you can get the full value of your franked dividends, but if you're earning less than $18,000 a year, if you're earning less than $37,000 a year, there's no tax refund for you under the Leader of the Opposition's plan. There's no tax refund for you because he's getting his hands in your pockets, because this Leader of the Opposition is addicted to tax, because he's addicted to spending, and nothing can control him, other than the Australian people, by ensuring that this Leader of the Opposition can never get his grubby hands on the hard-earned earnings of retirees around this country.

As we have seen, this policy, announced just two weeks ago, has turned to custard in a matter of days. First, they are going to compensate people. Then they are not going to compensate people. Then they are going to compensate people again. Now, here today, they may compensate people. This policy has been an absolute dog's breakfast. The shadow Treasurer—I don't know what it's worse: the idiot who put it forward or the idiot who agreed with it.

Jim Chalmers (Rankin, Australian Labor Party, Shadow Special Minister of State (House)) Share this | Link to this | Hansard source

My question is to the Prime Minister. How is it fair that under the government's policies a wealthy retiree couple would get a cash bonus from dividend imputation, despite the fact they have $3.2 million in super, own their own home, have $200,000 in Australian shares outside of their super, draw $130,000 a year in super income, receive $15,000 a year in dividend income, and pay no tax?

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The honourable member overlooks, in his question, that what his party is seeking to do is prevent any Australian—no matter what their financial status is—from getting the cash from a franking credit that they have not been able to offset against other income. The justice in allowing self-funded retirees, pensioners and people on low taxable incomes to do this is very apparent—

Opposition Members:

Opposition members interjecting—

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

Look at the outrage, the indignation, from the Labor Party when I make that point. I want to delve into recent history—

Opposition members interjecting—

Yes, you're right. You'll regret this. Twenty years ago—Labor's election policy in 1998—

Opposition members interjecting—

this is what the Labor Party said. They went on a unity ticket with John Howard to the election, and this was the policy:

Low income older people will be able to use their imputation credits even if they do not pay tax. This will mean that they can effectively 'cash out' the value of their imputation credits and increase their disposable incomes.

Mr Khalil interjecting—

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

The member for Wills is warned.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The Labor policy went on to say, 'This reform will benefit many low-income retired Australians, including full rate pensioners, who are otherwise not embraced by the taxation system. Many thousands of pensioners, who have modest investments in public companies, currently obtain no tax benefit from the franked dividends they receive. The full value of these credits will now flow through to the pensioner shareholders. In addition, the reforms will ensure that investors, who currently pay little or no tax, will not be unfairly disadvantaged.' That was Labor's policy then. It was also the coalition's policy. The reform was legislated with bipartisan support in 2000. What was an act of compassion and fairness—

Ms Butler interjecting—

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

The member for Griffith is warned.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

in 1998 is now, according to the honourable members opposite, a tax rort, a loophole and a scandal that has to be put an end to—

Ms Husar interjecting—

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

The member for Lindsay is warned.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

It is an insult to hardworking Australians who've saved through their lives to be financially independent. It is robbing them. It is picking their pockets when they deserve our respect. (Time expired)

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

Before I call the member for Indi, the level of interjections is far too high. A number of members have been warned. They know what happens next. I'm not going to raise my voice to try and compete with them.