Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

My question is to the Minister for Finance and Deregulation as the Minister representing the Minister for Climate Change and Energy Efficiency. Will consumers be paying more GST by virtue of the flow-through price increases consequent on the passage of the carbon tax?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The government have been completely upfront with Australians about there being an impact on prices as a result of the CPI increase of 0.7 per cent that the carbon price will give effect to—an amount which is significantly less than the impact on the CPI of the GST, which I am asked about, when it was first put in place. These factors are what have driven the calculation of the government's assistance package, which we have gone through ad nauseam in this place. They include the fact that nine out of 10 households will receive some assistance through tax cuts and/or payment increases. Almost six million households—that is, two out of three—will get tax cuts or increased payments that will cover their entire average price impact.

George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

Mr President, I rise on a point of order that goes to relevance. The question was a narrow one. It had nothing to do with the compensation package. It asked whether or not consumers would be paying more GST. That is all.

John Hogg (President) Share this | Link to this | Hansard source

The minister is answering the question. The minister has one minute and four seconds remaining.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I have been clear that there will be an increase in prices. We have indicated that. The Treasury modelling indicates that. We have been clear: food will increase by less than 0.5 per cent—on average $1 per week; electricity, $3.30 per week—on average 10 per cent; and gas, around $1.50 per week—on average nine per cent. The government will also be providing tax cuts: a tripling of the tax-free threshold—also to be opposed by the opposition, also to be wound back by the opposition, just as the opposition will be opposing and winding back the increase to pensions, the increase to disability support pensions—

George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. The question, as I pointed out in my earlier point of order, was only directed to whether or not the GST would increase. You allowed the minister to proceed because she had one minute and four seconds to go. She now has five seconds left. She has not addressed the question either directly or indirectly. She can answer the question, yes or no, in the remaining five seconds and I ask you to direct her to the question.

John Hogg (President) Share this | Link to this | Hansard source

Senator Brandis, I cannot instruct the minister how to answer the question. You may well phrase your question in a particular way and expect a particular answer. But I cannot instruct the minister to answer in the way in which you may wish the answer to be constructed. I believe the minister was answering the question and I ask the minister to continue. The minister has five seconds remaining to answer the question and I ask the minister to address the question.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

As I was saying, we have published full details of the price impacts of the carbon price.

Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

I assume the minister was trying to say yes but could not bring herself to it. Mr President, my first supplementary question is: was the impact of this carbon tax on the GST modelled? If not, why not? If it was, what will be the expected total extra GST take as a result of the Labor and Greens carbon tax?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

In relation to the question about the quantum, I do not have that information. I will see if I can find whether or not any of that is available. I suspect that the answer will be that the government will update its budget figures—which will include tax-take in the usual way—in the midyear review, which is due before the end of the year. That midyear review will reflect the state of the government's policies and will include the legislative package which was passed by the Senate. I will see if I can provide any further information on that. In relation to the Treasury modelling, it has been very clear on the price impact of a 0.7 per cent CPI increase and that has been the basis of the very substantial household assistance package, which will increase pensions and reduce taxes—which the opposition are opposed to.

Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given that the impact of this tax on the GST was clearly not modelled, how can the government argue it is giving sufficient compensation to consumers? Will the government's advertising campaign, designed to sell the public a tax that it does not want, point out the additional costs to consumers of this tax on a tax together with the increased marginal rate on income taxes?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

In relation to the income tax rates, they are clearly set out in the clean energy package. They were set out by the government when we announced the tax cuts that we will make—the tripling of the tax-free threshold. The effect on some of the headline income tax rates was also transparently released. What it shows is that anybody in this country earning under $80,000 a year will, under our tax reform package, which is part of the clean energy package, get a tax cut—a tax cut which those opposite are opposed to. This action stands in stark contrast to the opposition, who will be imposing some $1,300 more in tax on electorates and on their voters to pay for their direct action policy. That is the difference between those opposite and us. We will cut taxes. They will have to raise them or slash health services to fund their policy. (Time expired)