Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

I thank Senator Wang and congratulate him on his first question. Senator Wang is, of course, right: the National Commission of Audit made such a recommendation. But, as I am sure Senator Wang would be aware, the coalition went to the last election making a very clear commitment that there would be no changes to the GST under this government—full stop, end of story. If Senator Wang were to consult with his honourable colleague Senator Lambie in relation to the proposition that he has just put to me, I suspect that Senator Lambie, in her capacity as standing up for the good people in the great state of Tasmania, might have a view in relation to these matters that might be slightly at odds with the views that Senator Wang has just expressed.

The truth of the matter is that the GST is a tax which raises revenue which goes to the states. It is true that there are some issues that have been raised from time to time, including by the Premier of Western Australia, Mr Barnett. Mr Barnett is an outstanding Premier for the great state of Western Australia. He does a very good job standing up for the best interests of the people of Western Australia. But, of course, as Minister for Finance in the national government, I have to take responsibility for the country as a whole. In that context, any changes to our tax system would have to flow from a tax review white paper process; it would have to be based on extensive consultation. Whatever changes we might consider as a government in relation to anything related to the tax system that was not part of our pre-election commitments in the lead-up to the last election would have to be taken to the next election in order to get a mandate from the Australian people, including the great people of Western Australia.