Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minster representing the Prime Minister, Senator Evans. Can the minister outline to the Senate the impact of the delays of key budget measures on the surplus and the Australian economy?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I thank Senator Polley for her question, because it is a very important question. During the election campaign, the Labor Party made it clear that we would deliver on our election promises and we would also be fiscally conservative in our approach to the management of the economy. What we have tried to do in delivering our first budget is to deliver on all those promises that we made to the Australian community, and it is interesting that they are really noticing the difference in approach.

As from 1 July, the tax cuts we promised will be delivered. As from 1 July, the increase in the childcare rebate will be delivered and the education rebate we offered to parents will be delivered. All the measures we promised will be delivered as part of our budget. As part of our approach, we made the decision that we needed to show fiscal responsibility. So we funded all our new spending commitments by savings and revenue measures. We made that very clear. That allowed us—

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

Senator Minchin interjecting—

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Senator Minchin, you may have abandoned all economic responsibility, or maybe it is that you do not have the numbers in the party, but I am very disappointed in you ruining your reputation in this way. The Labor government have delivered a $22 billion surplus—a record-size surplus—to assist us in putting downward pressure on inflation and downward pressure on interest rates to support working families, those on fixed incomes and the community generally to fight the terrible impact that inflation has on people’s standard of living. So we are delivering the tax cuts and the benefits that we committed to, but we are also trying to deliver the general economic context which will allow us to fight inflation by maintaining a huge budget surplus.

The opposition seem not to accept the result of the last election and they seem unable to form a position on any of the key issues. They have had six weeks to digest, analyse and consult on the budget. What we have seen in the last week or two is the opposition’s attempt to hide behind Senate process—to say that they need more time to consider measures. It is interesting that they started out on a range of measures but, as that got uncomfortable, they abandoned those. So their positions on the baby bonus and family tax benefit B disappeared. So what are they left with? They are left with key issues like arguing against those people who want to purchase a luxury car paying increased taxation. That is where their priorities are. They are getting out there to ensure that people who want to buy a luxury car are not taxed as much as the government says they should be. That is their point of principle with this budget: defending the luxury car tax; defending people against paying the luxury car tax. The other thing they are really strong on is preventing us from closing the loophole whereby major oil companies get an exemption from paying the excise on condensate. So they are keen to defend major oil companies from paying tax.

So we have the Liberal opposition now with two points of principle left that are going to cost taxpayers $282 million. We are going to do $282 million cold while they look at these issues. It is not that they said they are going to oppose these things; they just need more time to think about them—at a cost to Australian taxpayers of $282 million. Because they are so weak, so ill-disciplined, so confused and so lost, they cannot find a position. They are a party in search of a position. That is going to cost Australian taxpayers $282 million.