Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Hansard source

I thank Senator Day for his question and I acknowledge his longstanding interest in all matters to do with families and taxation. I note that this is the second time today that Senator Canavan has been mentioned in questions, so well done! In relation to senators sitting to your left, I can honestly say that there is only one senator that sits to my left and that is the President.

In relation to the question that has been asked, many of the issues that the senator raises are matters that we as a government are seeking to grapple with, such as the deficit and debt burden. Senator Day has helped us to try to deal with that situation, whereas the Australian Labor Party and the Australian Greens, having created the mess, have no intention of assisting us in that regard. The current tax system is based on the individual, while the transfer system is based on the family unit. The transfer system that we have is based on the family as this is the more appropriate way to assess the means of a family unit and to provide targeted assistance.

People can mean many different things when they refer to income splitting. It may, for example, involve a joint filing system, which may involve significant new administrative costs to implement. There are also other options conceivable in tax theory. So when one looks at all the opportunities available, one thing that I would say to Senator Day is that this government is determined to look after the family and also to reduce the tax burden on the family unit. I know that that is what motivates Senator Day. It similarly motivates us. (Time expired)