Angus Taylor (Hume, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

I rise to speak on this bill, the Treasury Laws Amendment (Refining and Improving Our Tax System) Bill 2023. The coalition will be supporting this bill. The coalition stands for lower taxes, not higher taxes. We believe it's important to have a tax system that encourages people to get out, invest, take risks, work hard and get rewards for it, and that is absolutely central to our core beliefs. But we also recognise an effective tax system is a requirement for effective government. Australia, when compared with other advanced economies, already collects a lot of tax. In 2021-22 the Australian government collected $550 billion in tax receipts. As a percentage of GDP we collect more income tax than most of the G20 economies and almost all of South-East Asia—more income tax, for instance, than South Korea, Singapore, Malaysia and New Zealand.

Tax is the foundation of the social contract between government and the people. We collect tax because we want good government services, and there is a role for government. For the majority of Australians, tax is the main experience of the coercive power of government in their lives. For this reason discussions about tax go beyond technicalities to the very essence of what our country is and what our democracy is, so it's critical governments keep their promises on tax. Governments should always keep their promises on tax—something we haven't, sadly, seen from this government. It's critical that governments get their tax settings right, and that means ensuring our tax system is simpler and fairer for all individuals and families, making sure our tax system facilitates—rather than blocks—economic activity, investment, work and taking a risk for small businesses, sole traders and the big employers, heavy industry, as well. It means making sure that our tax system provides certainty and predictability for our retirees, investors and our not-for-profit sector.

Fundamentally, it's critical that governments never lose sight of who pays the taxes. There is no magic money tree that the ATO can shake as it pleases, just as there's no magic pudding and no goose laying golden eggs. Tax is paid by individuals and hardworking families, small businesses, employers, service providers, manufacturers, producers and consumers. They all pay tax, and it all comes out of their pockets. Behind every dollar of tax raised is a person trying to get by in the economy, and that's why we can't tax our way to prosperity. Every dollar of tax is a dollar that could have been spent on school uniforms, new machinery, a pay rise for staff—all of those things can be paid—

I'll take the interjection from the member opposite, who I think would like to tax everything that moves, which is the Labor way. They love to tax everything that moves. In 2019 we saw an election on taxes, and we know what happened. We shouldn't talk about tax reform as raising more taxes. When those opposite talk about tax reform, we know what they mean—they mean higher taxes. Instead, we should talk about how we make the tax system simpler and fairer to better support aspiration and enterprise in this country for everyday Australians. That's what we need to focus on when we talk about tax.

When it comes to this bill—and this has been brought forward by the government—the good news is that we do see some of these principles being followed. That should come as no surprise because not one, not two, but every measure of this bill is an initiative of the former coalition government, from double taxation treaties to equalising tax treatment across entities, streamlining charities and administration, and cutting red tape for small businesses and brewers. This is a bill that extends the coalition's proud record of cutting and lowering the cost of doing business and streamlining our tax system. This is something we haven't seen enough of yet from those opposite, but we're very pleased this has come forward. In fact, the last bill of this nature is currently stuck in the Senate. Small businesses are waiting for certainty around tax incentives which they were promised back in May last year. This is despite the government expediting all sorts of interventions in our economy or cultural priorities: DGR status for the voice was rushed through; unprecedented market intervention in our gas market was rushed through; reregulation of the labour market was rushed through. But tax incentives for small businesses—delay, delay, delay. So we see where the priorities of those opposite are. They're very clear. But at least this is something that we can get behind and support.

While we will be supporting this bill, we will rely on the Senate economics committee to ask questions and make sure that it's being done the right way, in the spirit of wanting these issues to succeed. Sadly, while this bill has many measures we can support, it doesn't make up for Labor's broken promises on franking credits, on superannuation taxes and on taxing unrealised capital gains. I tell you, that's really opening up a whole new area of taxation for those opposite, which I'm sure they're looking forward to getting themselves stuck into. Many small businesses will be captured by Labor's superannuation changes and their attack on unrealised capital gains. Many charities will lose out in Labor's broken promise on franking credits. It's a full-blown assault on franking credits—something they promised they wouldn't do, but it's clear now that it's happening.

Labor's broken promise on superannuation taxes means that, with soaring cost-of-living pressures, Australians will be worse off as they look forward to their retirements. This is not just a broken promise; it undermines confidence in our superannuation system. The whole point of our superannuation system is that people put money away for extended periods of time—often not for just 10 or 20 years but for 30, 40 or even 50 years. That means there is enormous trust that has to be put in politicians in this place that they are not making changes that would breach trust with the Australian people on money that is put away for very long periods of time.

Despite promising no changes to superannuation before the election, this government is proposing doubling super taxes on one in 10 Australians. That's their numbers. By the time they retire, it could easily be many more. The government are stopping companies from offering franking credits to Australian investors, super funds and charities. It's important to remember that franking credits are not to the benefit of the company; they are to the benefit of the individual, the investor.

Scott Buchholz (Wright, Liberal Party) Share this | Link to this | Hansard source

Is the minister seeking to make a point of order?

Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

Yes. Mr Deputy Speaker, I didn't mind the shadow Treasurer straying from the topic of the motion a little, but now he is engaging in tedious repetition. To break one standing order is forgivable, but he has broken two and I think you need to sit him down.

Scott Buchholz (Wright, Liberal Party) Share this | Link to this | Hansard source

Thank you very much for the advice. I will listen to the member for Hume closely.

Angus Taylor (Hume, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

I will seek to remain absolutely relevant to the fact that this government wants to raise taxes on superannuation, on franking credits, on unrealised capital gains and no doubt on many other things. In fact, we saw yesterday in this place a long list of ministers standing up in question time and saying to the Treasurer that they want more money. I'll tell you what: there's a conga line outside the Treasurer's office as they line up asking for billions and billions of dollars.

Scott Buchholz (Wright, Liberal Party) Share this | Link to this | Hansard source

The minister has the call on a point of order.

Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

I'm as sorry as he is that he didn't get the MPI today, but this bears no relevance to the bill that is before the House.

The DEPUTY SPEAKE R: Member for Hume, I'll just remind you that the bill you are speaking to is the Treasury Laws Amendment (Refining and Improving Our Tax System) Bill.

Angus Taylor (Hume, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

I will continue to talk about our tax system and how those opposite are not refining and improving it. In fact, they are making it much worse. But 'refining and improving' is the topic, and I will stick very much to that topic of how we should improve our tax system and how those opposite aren't.

Despite claiming that fewer than 80,000 Australians will be affected by their superannuation tax, independent research has shown that, by retirement age, more than 500,000 Australians will be hit by their tax. That's not refining and improving. That is making our system much worse. What's even worse is the government can't explain how these changes will work. It's true that the real economists on that side of the House don't get to speak on these things. They have to sit behind the Treasurer, who really has no background in economics. It's not hard to see that there is a real problem with the calibre of the people. Trying to explain all of this is the member for Parramatta and the member opposite me here, the member for Fenner. But the truth is that we have had no real explanation of these policies. The Assistant Treasurer has no capacity to explain these policies. They certainly don't refine and improve our tax system. The Prime Minister says it will impact one in 200 people. The finance minister says it is one in 10. If the government can't explain it, how can Australians understand it?

Australians are right to be wondering what Labor will do next. Small-business owners were shocked to see it buried in last year's budget when those opposite were ending the extension of the instant asset write-off. This is a big deal for small businesses. If that is the government's version of refining the tax system, we should all be deeply worried. There was no media release from the minister or statement in the parliament; there was just a quote in the newspaper, as small businesses got hit. Sole traders would be right to—

Scott Buchholz (Wright, Liberal Party) Share this | Link to this | Hansard source

The minister is seeking the call on a point of order.

Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

Deputy Speaker, I would ask you to ask the shadow Treasurer to follow the standing orders. His comments for the last five minutes have borne no relevance to the bill before the House. He knows there are other places he can make these arguments. He hasn't moved a second reading amendment. He hasn't put forward a matter of public importance—

The DEPUTY SPEAKER: I thank the minister for his contribution. The title of the bill is the Treasury Laws Amendment (Refining and Improving Our Tax System) Bill. The member for Hume is talking about the tax system and refining it.

Angus Taylor (Hume, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

It's clear I've upset those opposite. I will seek to focus on the substantive issue, which is that all of this boils down to one key question: how can Australians trust Labor when they say one thing before the election and another thing after it? Labor's promises on tax were clear—there were to be no changes to franking credits; there were to be no new superannuation taxes—and they've broken them, alongside their broken promises on cheaper mortgages and the $275 reduction in electricity prices. Remember the promise of low inflation? All of those promises have gone.

While the coalition will support this bill, we call on the government to stop breaking its promises on tax and energy, and to support Australian small-business owners with more red tape reduction, more incentives to grow their businesses and more support to resolve labour market shortages before the cost-of-living crisis gets completely out of control.

Debate adjourned.