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

My question is to the Treasurer. The budget includes a seven-year personal income tax scheme. The budget papers outline three separate steps of the scheme, and the government this morning introduced legislation to implement all three steps of this scheme. Will the Treasurer immediately release the separate cost of each step of its personal income tax scheme?

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

The cost of the plan over 10 years is $140 billion.

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

My question is to the Prime Minister. Will the Prime Minister release the separate cost of each step of the government's seven-year income tax plan?

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

I thank the honourable member for his question. The Treasurer has answered that question very, very well. The question that the member for McMahon and his leader can't answer is: what would happen to the Australian economy and thousands of jobs if they were able to manage their tax plan, which is putting up taxes on businesses, on families and on trusts and is grabbing the cash out of retirees' savings—

Mr Tony Burke (Watson, Australian Labor Party, Manager of Opposition Business (House)) Share this | Link to this | Hansard source

Mr Speaker—

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

The Prime Minister will resume his seat.

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

I've concluded my answer.

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

The Prime Minister has indicated he's concluded his answer.

Ross Vasta (Bonner, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Small and Family Business, the Workplace and Deregulation—

Opposition Members:

Opposition members interjecting—

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

The member for Bonner will pause for a second. Members on my left will cease interjecting. The member for Bonner will begin his question again.

Ross Vasta (Bonner, Liberal Party) Share this | Link to this | Hansard source

Thank you, Mr Speaker. My question is to the Minister for Small and Family Business, the Workplace and Deregulation. Will the minister inform the House about how the government is building a stronger economy by backing businesses to invest and create more jobs? Why is it important that the government stick to this plan?

Craig Laundy (Reid, Liberal Party, Minister for Small and Family Business, the Workplace and Deregulation) Share this | Link to this | Hansard source

I thank the member for Bonner for his question, and I look forward to joining him on Friday to meet with many small and family business operators in his electorate. We have a plan on this side, and the Treasurer has been speaking about it up hill and down dale, as has the Prime Minister. He delivered at this dispatch box last night the latest addition and update to a plan for a stronger economy where we create more jobs and businesses create more jobs, and that allows us to support more essential services for hardworking Australians.

I was looking back at the plan of those opposite. In the last financial year that the Rudd-Gillard government ran this economy, there was a net decrease of 61,000 businesses in this country, irrespective of size. Under the Turnbull coalition government's plan, updated, as I said, last night by the Treasurer, in the last financial year there have been—keeping in mind that the decrease of 61,000 for Labor was across businesses irrespective of size—65,000 new businesses started just in the small and family business space.

That's why it's important that we legislate tax relief for small and family businesses—some 3.3 million of them. Why? Because they employ 6.8 million hardworking Australians. This is where you get the thousand jobs a day from this plan. This is how you enable and empower businesses and people that are prepared to take on bank debt, back themselves and employ people—something those opposite would know nothing about. They are prepared to put their family's home on the line, get out there and employ hardworking Australians.

Mr Perrett interjecting—

Ms Husar interjecting—

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

The minister will pause for a second. The member for Moreton is warned. The member for Lindsay's been warned and she can leave under standing order 94(a). The minister can resume his answer.

The member for Lindsay then left the chamber.

Craig Laundy (Reid, Liberal Party, Minister for Small and Family Business, the Workplace and Deregulation) Share this | Link to this | Hansard source

The risk to the plan is a change in government. Why? We heard this while we were away: we know about some of the harsh things that may happen on a change of government, but what we don't know is about the secret deal that the Leader of the Opposition has with unions and his union mates. Most notably, at least half the frontbench, according to The Australian, are concerned because they don't know what's in it. They should be concerned. They should be concerned, and why? Would you trust the Leader of the Opposition to go into a room and argue for a wage increase on your behalf, Mr Speaker? That's the question we'll be asking between now and the next election.

The Leader of the Opposition's secret plan with his union mates, most notably the CFMEU, will put a wrecking ball through this economy, putting at risk everything that has been gained by the business community, irrespective of size, over not just the past 12 months but the past five years. Our plan is about improving opportunities for all Australians, reducing pressure on households and providing more certainty when it comes to providing the essential services they have come to expect.

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

My question is to the Treasurer. This morning the Treasurer introduced legislation to implement the government's entire seven-year personal income tax scheme. Already today, at the National Press Club, the Treasurer refused to say what the year-by-year cost of the scheme would be. Treasurer, will you tell the parliament the year-by-year cost of the government's personal income tax scheme over those seven years?

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

The shadow Treasurer would be well aware of the process for putting together budgets. He was once a Treasurer, though it wasn't for very long. We on this side of the House are going to work very hard to ensure he doesn't get that opportunity again, because of the lack of understanding that he is demonstrating in this place about how budgets are put together.

I have made it very clear that the cost of that measure over the medium term is $140 billion. You have the opportunity to support tax relief for Australians or walk away. You want to take any excuse not to support tax relief, and you'll take it, shadow Treasurer. The shadow Treasurer wants a blank cheque on tax for one simple reason. The shadow Treasurer can't stand up to the Leader of the Opposition, he can't stand up to the Deputy Leader of the Opposition, he can't stand up to the whole mob here who want to spend money like there's no tomorrow. He wants a blank cheque on tax and the Australian people should never give it to him.

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

I want to know the cost!

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

He says, 'What about the cost?' Don't forget: it's their money. It doesn't cost us; it costs them to pay tax. We think they should keep what they earn. You want to take it all, through you, Mr Speaker. That's what he wants to do—$220 billion of higher taxes on the economy, and he's just getting started.

Luke Howarth (Petrie, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Revenue and Financial Services. Will the minister please outline to the House how the government is protecting the superannuation of Australian workers?

Kelly O'Dwyer (Higgins, Liberal Party, Minister for Revenue and Financial Services) Share this | Link to this | Hansard source

I thank the member for Petrie for his question. I note how hard he works on behalf of all of his constituents. What a great advocate he is. The government does recognise how important it is to ensure that Australians' retirement savings are protected from undue fees and charges. Why? Because 9.5 per cent of people's wages today are deferred into the future for their retirement income and the government has a responsibility to protect this money.

As part of the budget that we announced last night, the government will be introducing a sweeping package of reforms to help safeguard the superannuation of millions of Australians. We are capping the fees on low-balance accounts below $6,000. That will return around $570 million to people's retirement accounts. We are banning exit fees on all accounts. That will return $52 million to retirement accounts. We are improving the insurance arrangements to allow young members and those with inactive or low-balance accounts to choose whether or not they want cover. That is up to $3 billion returned to people's retirement accounts. For the first time we are giving the Australian Taxation Office the powers to proactively reunite people with their superannuation—their lost or inactive superannuation. This will mean that, in the first year alone, $6 billion will go back into the retirement accounts of millions of Australians.

These changes will take effect on 1 July 2019 and will mean that people will have more money in their retirement accounts. This is particularly important for young Australians. It will help them to build up their nest egg at the most important stage, as they are building their careers. It will mean for a median-income-earning 26-year-old with multiple accounts that they could save $5,300 in fees and premiums over the first 10 years, which will increase their balance at retirement by around $50,000. This is real money in people's accounts. It is because on this side of the chamber we recognise that superannuation money is members' money. It belongs to them; it should be reunited with them. Those on this side, just like they do with taxes, think that the money belongs to them or to vested interests within the superannuation movement.

The Leader of the Opposition has an opportunity on Thursday night to back these reforms, because it was the Leader of the Opposition, when he was minister for financial services, who mucked this up. He let there be a free-for-all on fees. He put young people into superannuation and we are fixing his mess. (Time expired)

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

My question is to the Treasurer. Treasurer, what is the year-by-year cost of the budget's seven-year personal income tax scheme over those seven years?

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

I direct the member to page 33 of Budget Paper No. 2, which sets out the normal process for costing measures, which shows $13.4 billion over the forward estimates. And, as I've indicated, the full cost over the 10 years is $140 billion. He asks about year-on-year costs beyond the forward estimates. I find that passing strange, to use a term of a former Prime Minister from that side of the House, because Labor's retiree tax provides no year-by-year estimates beyond the forward estimates. They provide a 10-year estimate, which is not 100 per cent clear, I have to say, because it's not clear that they've actually factored in the fact that we've got a $1.6 billion transfer balance cap, which means those with higher balances will be able to use more credits. But I find it interesting that, as usual, he is prepared to apply one rule to himself and a different rule to others. What I know about the Labor retiree tax is it's a kick in the guts to retirees. And what I said last night is this side of the House will not go pilfering the tax refunds of pensioners and self-funded retirees—because we think they should be respected. And the Labor Party thinks they should be taxed.