Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Cormann. Can the minister update the Senate on the government's tax reform agenda?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank Senator Edwards for that very important question. The Liberal-National Party coalition are committed to tax reform which delivers lower, simpler, fairer taxes. That is because on this side of the chamber, we understand that lower, simpler, fairer taxes help drive stronger growth, help drive stronger employment growth and, of course, help drive better opportunities for people right across Australia to get ahead. Stronger economic growth, as well as doing all of that, helps to drive stronger revenue for the government without the need to come up with new or increased taxes.

The Liberal-National Party coalition are working hard to get spending under control so that we can continue to lower the tax burden in the economy, whereas Labor, of course, are the big-spending, high-taxing party. That will be the choice that the Australian people will have in front of them at the next election: the big-spending, high-taxing party which will make it harder for the economy to grow, or, on this side, the party that are working hard to get spending under control and to bring down the tax burden. Since we got elected in September 2013, we have got rid of the carbon tax, we have got rid of the mining tax, we reduced taxes for small business and—

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

You are the highest-taxing finance minister in history.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Here we have Senator Conroy interjecting about the tax burden in the economy. Let me be very explicit: the tax burden as a share of GDP today is lower than it would have been under Labor, because we got rid of all of Labor's job-destroying and investment-destroying taxes like the carbon tax and the mining tax. Labor did not take a policy to the last election and Labor does not have a policy right now to reduce income taxes, when I last looked. Unless Senator Conroy wants to tell us that the Labor Party has a policy to reduce income taxes—I see that he is now distracted. Labor is the big-spending, high-taxing party; we are the party of lower taxes. (Time expired)

Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Will the minister inform the Senate what the government is doing to ensure that all businesses generating profits in Australia pay their fair share of tax consistent with our tax laws?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

That is a very important question by Senator Edwards. While the coalition are absolutely committed to lower, simpler, fairer taxes, we are also committed to the integrity of our tax system. We are working very hard to ensure that every business in Australia generates profits in Australia and pays taxes in Australia consistent with our laws. We already have one of the toughest anti-avoidance laws in the world, but there is always room for improvement. As G20 president in 2014, the Treasurer has led the global response to multinational tax avoidance. He is getting on with measures to strengthen the integrity of the system. The government have released a draft multinational anti-avoidance law to stop multinationals from artificially avoiding a taxable presence in Australia. This is real legislative action. We plan to introduce the legislation in the spring sittings. We are also actioning the G20 and the OECD on erosion and profit-shifting recommendations, on country-by-country reporting, anti-hybrid rules, harmful tax practices, treaty abuse rules and exchange of rulings. (Time expired)

Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Will the minister inform the Senate of any alternative policies that protect the integrity of our system?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Over six years in government, Labor did virtually nothing. There was a lot of talk but not a lot of action. There were a lot of announcements but not a lot of follow-through. Here we now have on the Labor side a Senator 'jack-in-the box'. And I see that Senator 'jack-in-the-box' on the other side is again out his box and indeed has been trying to run yet another stunt in relation to—

Stephen Parry (President) Share this | Link to this | Hansard source

Minister, refer to senators on the other side by their correct title.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Thank you, Mr President. I was not actually referring to any senator that is present in his seat. We do need to ensure that this issue is treated seriously. This is not an issue to be dealt with with one stunt after the other. This is not an issue that is to be dealt with in a jack-in-the-box way of going about things. I would like to know whether this Senator 'jack-in-the-box', who does not appear to be present in the chamber, actually reflects Labor Party policy. Does he actually reflect Labor Party policy or is he just talking for himself? (Time expired)