Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Hansard source

I move the motion standing in Senator Fifield's name:

That the Senate notes the failure of the Gillard Government to live within its means or to develop a coherent fiscal strategy.

The Labor Party in government does not know how to manage money. They manifestly do not know how to live within their means. In their first four budgets they spent $172 billion more than they raised in revenue, and of course this year was supposed to be the year—the first time since 1989 that a Labor government was going to deliver a surplus budget. But sure enough, in the shadow of Christmas, while the Treasurer was hoping that Australians were distracted and starting to focus on some Christmas cheer and end-of-year celebrations, he snuck out there and gave a press conference, and finally fessed up to what everyone across Australia already knew: that this government would not be delivering a surplus in 2012-13 either.

This Labor government does not know how to manage money. This Labor government does not know how to live within its means. This is a government that spends too much, which is why they are always casting around for more cash, which is why they are always looking for more new Labor Party taxes, which is why we are, yet again, talking about increased taxes on people's superannuation savings.

The government will say, 'Well, we've got very difficult circumstances.' And, yes, there was a global financial crisis. However, you have to look at our circumstances here in Australia. Firstly, the Labor government in 2007 inherited a very strong budget position: no government net debt; $70 billion worth of Commonwealth net assets; a $20 billion surplus. And of course we are here, in the Asia-Pacific—a very strongly growing part of the world. Australia, in the first four years of this Labor government benefited from the best terms of trade in 140 years, and if you look at other resource based economies around the world, they have all been delivering surplus budgets, and they are all in a much stronger fiscal position than Australia under the administration of both the Rudd and Gillard governments.

Not only did they inherit a strong budget position, with no government debt, a $20 billion surplus and $70 billion worth of Commonwealth net assets; not only did they benefit from the best terms of trade in 140 years, because we are a resource based economy and because we are in the Asia-Pacific right at the heart of the rapidly-growing part of the world; they also imposed 27 new or increased Labor Party taxes—27 new or increased Labor Party taxes, so far.

You would remember, Madam Acting Deputy President Stephens, that last week the Prime Minister gave a speech to the National Press Club and in her speech there was no coherent economic strategy on how to grow Australia's economy more strongly—nothing! There were only two things in the Prime Minister's speech: an election date of 14 September, and an assertion that somehow the Australian people are not paying enough tax. It was a clear threat, because of course the problem that the Prime Minister has, and the problem that the Treasurer has, is that not only has Labor spent $172 billion more than they have raised in revenue in their first four years, they have already made $120 billion in unfunded election commitments.

So here we have it: we have a government that has spent too much. We have a government that is always desperate for more cash—always casting around for another tax grab. Yet it is still not enough. They still have not been able to balance the books, and they have made so many additional promises that they need more cash. So here we have the Prime Minister letting the cat out of the bag at the same time as she is announcing the election date. In the next budget, the Prime Minister says, there will be some tough decisions—some tough decisions, the Prime Minister says! We, of course, know that 'tough decisions' from a Labor Prime Minister like Ms Gillard is code for more Labor taxes.

Over the last two or three weeks, spin doctors out of the Treasurer's office and out of Mr Shorten's office have been busily backgrounding the press gallery trying to make the case that somehow there ought to be increased taxes on people's superannuation savings. That is not quite the way they put it. The way the Labor Party put it when they want come up with a new tax is that they essentially go out there and try to demonise a group of Australians that they are about to hit with a new tax. Usually the words they use are, 'There are some rich people out there that are taking advantage of some perks that they do not deserve.' That is their modus operandi. Remember we had the luxury car tax in their first budget, and the Treasurer went out and said: 'This is a tax on the rich. This is a tax on Australia's Maserati drivers. This is a tax on Australia's Ferrari drivers. Don't you worry, aspirational middle class; this will not be a tax that you will have to pay.' But guess what! Over the last four years, who has paid most of the revenue that came from those increased luxury car taxes?