Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Superannuation and Corporate Law, Senator Sherry, representing the Minister for Finance and Deregulation. Can the minister please outline to the Senate the details of the serious threat to the revenue base of the federal budget?

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary Assisting the Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Didn’t we get this exact same question yesterday?

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

Senator Macdonald, we may have, but I am dealing with today’s questions and I have not heard it today.

Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Link to this | Hansard source

There are important updates on yesterday’s developments, Senator Macdonald, and I am going to remind you of them. Senator Macdonald participated in those events this morning. Over the last few weeks, but in particular today, we have seen the development and the confirmation of serious threats to the budget surplus. What we saw this morning was the referral, deferral, obstruction, blocking—whatever term we choose to use—by the Liberal opposition, who have a majority in the Senate, of a range of key measures that are important to maintaining the government’s budget surplus. What we have seen is the Liberal opposition not learning a lesson from the last election. They have a majority in the Senate and are acting irresponsibly and recklessly and are threatening the surplus.

The Labor Party, at the last election, gave a very clear commitment to the Australian people: economic responsibility and fiscal conservatism. That is the underlying commitment we gave to our approach to fiscal management in this country, and that was reflected in the budget. It is particularly important to maintain that budget surplus because, as we know, inflation has been increasing. It is at its highest level in 16 years, and increasing inflation puts upward pressure on interest rates. That is why we built into the budget a surplus of some $22 billion. That budget needs to pass the Senate by 1 July. Unless those opposite, the Liberal opposition, who have a majority in the Senate, have a change of mind by the end of next week, important measures will be affected, which will result in a significant loss of revenue. Even if they decide to support the measures, there is going to be a significant loss of revenue, totalling some $300 million, between now and when the Senate comes back in seven or eight weeks time. Almost $300 million is a significant amount of money. It is not an amount of revenue to be taken lightly. What we have seen, and what I hope that the Australian people are seeing, is a reckless Liberal opposition that has not learned the lesson of having a majority in the Senate chamber.

Let us look at the areas where they are delaying, referring, obstructing and opposing that $300 million. Let us just look at some of the breakdown. First, there is the condensate for crude oil excise. What we are seeing is a Liberal Party that prefers to maintain a decades-old loophole that confers windfall profits on the producers of condensate. The Liberal Party prefers to maintain a decades-old loophole that confers super profits in respect of condensate. That will come at a cost of some $2.5 billion in revenue to the budget. We are not talking about small figures here. The revenue from the luxury car tax will be $22 million. From the passenger movement charge the revenue will be $27 million. From visa application charges and passport fees the revenue will be $32 million. These are consistent with our commitment to deliver budget surpluses, fiscal responsibility and fiscal conservatism. Unfortunately, the loss of and threat to this revenue will put upward pressure on inflation and upward pressure on interest rates. That is the approach of this reckless Liberal opposition: upward pressure on interest rates and upward pressure on inflation by failing to pass the government’s important budget revenue measures.