Nick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

My question is to the Minister for Innovation, Industry, Science and Research, Senator Carr. Could Senator Carr inform the Senate what modelling has been done on the impact on Australia’s three remaining car manufacturers of the huge, 30 per cent, $555 million increase in the so-called luxury car tax? Which Australian-made cars are now going to be even further out of the reach of Australia’s working families as a result of the rise in the tax and how many automotive jobs will be lost because of the tax hike?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Senator Minchin, as you are aware, the luxury car tax is a taxation measure and that is of course a question which should have been directed to Senator Conroy.

Nick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. Maybe Senator Carr does not realise it, but he is actually responsible for the Australian automotive industry. I know he is not across his responsibilities, but he is responsible for the Australian automotive industry. It is perfectly proper for me to ask him, as the minister responsible for the Australian automotive industry, about the impact of his government’s policies on the Australian automotive industry. If he cannot answer it, he should resign from his portfolio.

Alan Ferguson (President) Share this | Link to this | Hansard source

I listened to the point of order and in fact it is true that the question was about the car industry and the effect on the car industry. But the minister can choose to answer the question or not.

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

I am happy to answer the question. I will say this about Senator Minchin: he is one of the few senators on that side of the chamber who actually has an interest in the Australian automotive industry. He is one of the few senators on that side who actually understands what it means to the Australian economy to have a sustainable automotive industry. It is certainly not the view of the official representative for innovation on the coalition side. He is one of the few senators who understands how important the automotive industry in this country is to Australian manufacturing or to the nearly 70,000 Australians that depend upon the sustainability of this industry to ensure their livelihoods. This is an industry that provides high-skill, high-wage jobs to this country. But all we hear from the opposition is constant attack upon this industry.

Nick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. I am always wary of backhanded compliments from Senator Carr. The question was actually about what modelling has been done on the impact on the automotive industry, which Senator Carr says he is a defender of. What modelling has been done on the impact of his government’s policies on that industry? Could he answer the question?

John Faulkner (NSW, Australian Labor Party, Cabinet Secretary) Share this | Link to this | Hansard source

Those are the nicest things that have ever been said about you!

Honourable Senators:

Honourable senators interjecting—

Alan Ferguson (President) Share this | Link to this | Hansard source

Order! We will not continue until there is order in the chamber. Senator Carr, I remind you of the question.

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Thank you very much, Mr President. I was invited to make comments on the Australian automotive industry. I am taking this opportunity because—Senator Minchin is quite right—I am a strong defender of the Australian automotive industry, unlike the coalition, which is more than prepared to see the automotive industry, particularly in Senator Minchin’s state, face serious pressure. We have not heard a word from the official spokesperson for the opposition on the future of the car industry. We have not heard one statement in defence of the Australian automotive industry. All we have heard from them is constant attacks, constant running down of this industry. What we hear today is an attempt, once again, to belittle the Australian automotive industry.

This government has increased the luxury car tax from 25 per cent to 33 per cent, consistent with the government’s objectives to be fiscally responsible. This of course will have an impact on higher income earners. This is a tax on luxury cars. The opposition once again demonstrates that it is committed to ensuring the wealthier are millionaires. This is an opposition that provided welfare for millionaires, and it wants to criticise this Labor government, this good Labor government, for introducing a measure to increase—

Opposition Senators:

Opposition senators interjecting—

Alan Ferguson (President) Share this | Link to this | Hansard source

Order! Senator Carr, have you finished?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

No. Once again I remind you, Mr President, that I was invited to comment on these matters, and, in the manner of the invitation, I am. I have been asked to comment on the luxury car tax, which enhances a longstanding progressive element of the indirect taxation system. The luxury car tax only affects the most expensive 10 per cent of passenger vehicles. The top luxury cars are taxed more than the lower priced luxury cars. The luxury car tax on a Holden Statesman will be increased by less than $500, while the tax on a Porsche will increase by— (Time expired)

Nick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I put it to the minister—it is actually a fact and I would like his response to this—that his own hand-picked Bracks automotive inquiry is currently modelling the benefits of actually lowering the luxury car tax. What is your answer to that proposition, minister?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

The Bracks review is examining all aspects that are affecting the competitiveness of the automotive industry. It is a wide-ranging review. It is a review undertaken in circumstances where the Australian automotive industry is facing acute challenges. The review will be examining a range of matters. The terms of reference are sufficiently broad to allow any consideration of these taxation issues, and not just the taxation questions but the issues with regard to tariff and non-tariff barriers to the export of Australian automobiles. The review will provide an opportunity for the entire industry to have a say. I look forward to the opposition’s response to that review and I look forward to their support for the Australian automotive industry. I look forward to their support in this chamber.