Helen Polley (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Aged Care) Share this | Link to this | Hansard source

I move:

That the Senate take note of the answers given by the Minister for Tourism and International Education (Senator Colbeck) and the Minister for Rural Health (Senator Nash) to questions without notice asked by Senators Urquhart and Polley today relating to the Goods and Services Tax.

Today we saw again in this Senate a pathetic attempt to try to dismiss what we know the government has planned, and that is the increase of the GST to 15 per cent. When it came out into the public domain report that the GST will be added to everything—including fresh food, vegetables and fruit—the representative of the Minister for Health in this place said that she does not want to intervene in this debate. The Minister for Health has the responsibility to provide decent policy and to ensure that we have the best possible health system in this country.

The health system is only what we created when we were in government, because the Abbott-Turnbull government has actually cut $60 billion out of health. Senator Nash, you represent the Nationals in this place and you are the representative of the Minister for Health. If you are not concerned about $60 billion being cut out of the health budget, then who on your side would be? Obviously the Nationals are the doormat for this government, but we on this side will always stand up for struggling families. We will always oppose any increase to the GST to 15 per cent, because it will impact on every Australian family and every individual in this country. It does not matter whether you are going to the grocery store or whether you are going to the greengrocer; you are going to be hit. Every time you buy new school uniforms, your family will have to pay 15 per cent on all those items. Every single day when parents and carers around this country pack a child's lunch to go to school, they will have 15 per cent imposed on the cost of the apple that is put into that lunch. These are the real, everyday effects that this government's GST increase will bring to Australian families.

We have Senator Nash crying 'foul', accusing us on this side of scaremongering. This Turnbull-Abbott government are world-renowned for their scare campaigns. The former Prime Minister, the one who was rolled by those opposite, was a master of the three-word slogan, but those opposite are now finding that they may have changed their leader, he may wear better suits, he may be able to put more than three words together, but he is still defending the cuts that were made in last year's budget and this year's budget. They still have the same policies, except now they say, 'We want to have a mature debate about the taxation system in this country'. All we have done today in question time has been to ask questions about what the impact will be of a 15 per cent impost on medical services, medical appliances and everything that Australian families need around health. We already know that they have tried to undermine Medicare; we know because it is in their DNA to destroy Medicare. But when it comes to families being able to manage their budgets, coming up with that extra 15 per cent on everything across the board—everything that affects their household—this government is so unfair. It is a heartless government that has no idea how difficult it is for Australian families to meet their weekly budgets.

We know that people who live on a pension and low-income families are often forced during the cold winter months to go to bed with their electric blanket because they cannot afford electricity prices. What we will see is a greater impact and cost burden and another new big tax by this government on electricity, on gas, on groceries, on health care and on education, and all other bills will go up and they will keep going up.

A 15 per cent GST will have an enormous impact on Australian families and, in my home state of Tasmania, they can least afford it. We have the most challenges when it comes to people who are unemployed. We have a lot of trouble when it comes to people having the opportunity to go on to tertiary education. So, on top of the plan by this government to erode those opportunities for everyday Tasmanians, the government now wants to increase the GST to 15 per cent.

Senator Ian Macdonald interjecting—

It is very easy. Just come in here and tell us that you will not support it. (Time expired)

Ian Macdonald (Queensland, Liberal Party) Share this | Link to this | Hansard source

Be nice.

Zed Seselja (ACT, Liberal Party) Share this | Link to this | Hansard source

I thank Senator Macdonald for the words of advice. I will indeed follow his wise counsel.

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

I would not follow 'Wacka' anywhere.

Zed Seselja (ACT, Liberal Party) Share this | Link to this | Hansard source

I would follow 'Wacka', but I was actually talking about Senator Macdonald. I am grateful for the advice from Senator Macdonald, as the father of the Senate, and I am grateful for Senator 'Wacka' Williams' advice as well. I am glad that I was able to take 30 seconds responding to Senator Conroy's interjections—

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

Because you've got nothing to say.

Zed Seselja (ACT, Liberal Party) Share this | Link to this | Hansard source

This attack from the Labor Party is getting somewhat boring.

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

Would you like me to fill in another few minutes for you?

Zed Seselja (ACT, Liberal Party) Share this | Link to this | Hansard source

You are right, Senator Conroy, it is hard to fill up five minutes again responding to the same ridiculous question time tactics that we have seen from the Labor Party. Which strategic genius in the Labor Party came up with the 'devastating' attack in question time that we saw today? Those in the Press Gallery are still reeling from the absolute brilliance that we saw in Labor's question time attack! They are in meltdown up there—in absolute meltdown—over this extraordinary surprise attack on the GST, led by Senator Wong and now followed up by Senator Polley. We never could have seen that coming, and it has left those on this side absolutely reeling! It is an extraordinary attack, and I think whoever thought of it should be congratulated.

Let us talk about what we are dealing with in this country when it comes to tax reform and discussion around tax reform. We are talking about a mature and sensible debate that many are engaging in, except the federal Labor opposition. The federal Labor opposition, through their 'devastating' attacks in question time, are choosing to exclude themselves from that discussion. That is well and good. That is their choice, and they will go to the voters with that kind of a plan and that kind of a record. But the coalition government has a fundamental focus, and the fundamental focus is on growing jobs and growing the economy. That is absolutely what we want to do, and we will do it in difficult times and with global challenges. If we had a serious alternative government, they would have been asking questions about jobs and the economy, because that is the most important thing a government can be doing. Senator Cash talked about something like 290,000 jobs that have been created since the changed Senate.

We came into government with a plan to get rid of the carbon tax, get rid of the mining tax, sign up free trade agreements so that we can grow the economy, and cut red tape for small business. Of course, a number of these things were frustrated for some time by the old Senate. But then we did see the carbon tax removed, we did see the mining tax removed and we have also seen the wonderful work on free trade agreements. We are starting to see the dividends of many of those policies. There are also our small business policies, which are not only about cutting red tape but also giving small business a tax cut and giving them a recent asset write-off. That is starting to flow through the economy. And, as I said, something like 290,000 jobs have been created. I think it is over 200,000 this year. I think that is something the Treasurer has said. That is something that we should be proud of, and it is something that we want to build on.

Some state premiers are engaging in serious discussions about tax reform, and the Commonwealth government is very open to this. Unlike the Labor Party, we don't just want to increase taxes; we are open to the question of tax reform. But it needs to be about—and it will be about—creating jobs and growing the economy. There is nothing better a government can do than create jobs—many jobs and high-paying jobs—for people in our economy, because that is the way people can get ahead and live the most dignified lives. That is what we in this place should be fighting for. The rubbish that the opposition go on with reflects very poorly on them. (Time expired)

Anne Urquhart (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

We know that this government has a huge table piled with stuff, but those opposite cannot seem to agree on exactly what that stuff is. Our Prime Minister is unshakeable from the assertion that everything is on the table—and this includes a hit to the cost of living for every single Australian through a GST hike. In fact, in a recent interview with 5AA in Adelaide, the Prime Minister was very clear that the GST holds a prominent place in his planned changes to our taxation system. On this issue, Prime Minister Turnbull said:

I know Stephen very much shares my view which is that changes to the GST should be on the table.

But last week in this place, my Tasmanian colleague Senator Colbeck seemed blissfully unaware of his leader's intentions when he told question time last week that there was no proposal on the table from the government. Perhaps Senator Colbeck knows exactly what his leader is really planning but he is trying to distance himself from it. He knows, like I do, that a GST hike would be bad for Tasmania. It would be bad for Tasmanian workers, bad for Tasmanian pensioners, bad for those seeking work and bad for all Tasmanian families. It would also be bad for Tasmanian businesses—businesses like our salmon and apple producers, who would suffer the double hit of trying to sell their goods at a higher price to Australians who will have less money.

I am particularly concerned that those opposite are planning to slug the GST charge on the price of fresh food, which is currently exempt. We know that many fresh foods are already more expensive than some far less nutritious offerings on the supermarket shelves. We know that grocery bills are already forcing Australians to make difficult decisions when their need for a healthy diet comes into direct conflict with the money that they have in their wallets. If the GST were applied to fresh food, it would be inevitable that financial realities would lead many Australians to forgo fresh food in favour of cheaper junk food and inevitably our health outcomes would suffer, but those opposite do not seem to care about that. We need to be encouraging Australians to eat more of our amazing fresh produce—like Tasmanian salmon and apples—not putting it out of their reach.

The obvious discrepancy between our Prime Minister and our tourism minister is not the only inconsistency in the ranks of our government when it comes to the GST. On one hand we have the Prime Minister talking in soothing words about fairness. He assures us that poor Australians will not be worse off and he tells us that there will be compensation packages to make up for the hike in the cost of living for those on low incomes. Then on the other hand we have his Treasurer, Mr Scott Morrison, saying that, 'Any change to the GST would not result in a greater tax take from the federal government.' He tells us that if a GST were brought in it would be counterbalanced by tax cuts in other areas. It does not take an economist to work out these two statements are mutually incompatible.

Let us be clear, the GST is a regressive tax. It is the basic reality that the less you earn the more you have to shell out as a proportion of your income on the GST. If you are going to hike the GST but cut income tax without increasing the overall tax take, you are just replacing a progressive tax with a regressive one and that, by definition, will hit the poorest people in the country. Who do you think is going to benefit out of this? The richest in the country. The most wealthy in our society. This is a government that jumps and shouts about a plan to cut down on smoking but will not reject a tax hike on fresh fruit and vegetables—talk about twisted priorities. Swapping a progressive tax for a regressive one is not about reform. It is a lazy swipe at low-income Australians. Hiking the cost of living for everyday working Australians with no net budgetary benefit is not good economic management; it is just a cheap attack on the most vulnerable people in our society. Adding a GST burden to the cost of fresh food is not a choice that is in the national interest. It is a recipe for a health disaster. (Time expired)

John Williams (NSW, National Party) Share this | Link to this | Hansard source

I find it amazing that Senator Urquhart is talking about the cost of living and—

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

The GST's main man.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

We have got Senator Conroy interjecting again—dear oh dear. We will just disregard the interjections. I will talk to you, Deputy President. They want to go into the next election with this huge carbon tax, this huge price on carbon because that is not going to affect the price of electricity. As Senator Polley said, people have to go to bed in their electric blankets to keep warm. Those opposite would tax our electric blankets; that is their plan. Haven't they learnt? Who is running their tactics? It is probably Senator Conroy running the tactics for the opposition, hence the pathetic attack and the scaremongering they are going on with.

Senator Polley talked about these huge cuts on health spending by the government. It is quite amazing that when the opposition were in government and they knew they were going to lose the election, they made this enormous promise about all this spending on health and education knowing full well they were going to lose the election. They brought back Kevin Rudd to try and save the furniture when they sacked Prime Minister Julia Gillard. They went into this huge promise knowing full well they would never have to budget for it and never have to deliver it.

I am on a health inquiry with Senator Deb O'Neill at the moment. I was in Sydney last week. We just gave a 12.7 per cent increase this financial year to New South Wales for hospital spending. With 7.5 per cent next year, that is over 20 per cent in two years, and those opposite are saying we are cutting the spending in health. It is quite amazing that we are actually delivering it.

When you talk about the scaremongering of raising the GST, there is only one person in Australia who has said we should raise the GST and that is Mr Jay Weatherill, the Premier of South Australia. The Labor Premier of South Australia said, 'Let's raise it to 15 per cent.'

Opposition senators interjecting—

I say to those opposite—when I can get a word in from Senator Conroy—if only you understood business. This is what happens in business: if you are running a business and you have got a debt, the best way to pay for that debt or decrease it is to grow your business.

Senator Conroy interjecting—

You would not understand about business, Senator Conroy, because you have probably just been around the union movement most of your life like all your colleagues over there. They are all out of the union movement. The only thing you ever sold in your life was a union ticket.

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

No wonder you hate unions.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

I do not hate unions.

Gavin Marshall (Victoria, Deputy-President) Share this | Link to this | Hansard source

Senator Williams, ignore the interjections as I am also trying to.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

I will do my best but it is very difficult to ignore them. I do not hate unions. I was once a member of the Australian Workers' Union, when I was shearing in 1978 in the Flinders Ranges. I had a choice: buy a union ticket or get out of the shed. They held a gun at my head—buy a union ticket or get out of the shed or you will lose your job. Those opposite, if only you had some business experience. When you have a debt, you grow your business and that is what we are aiming to do.

Those opposite should stand up and say, 'Our tax system is perfect. We have the most perfect tax system in the world. No need to look at it. No need to adjust it. No need to discuss it with the Australian people or with the business sector or with the various interest parties throughout our nation. Don't talk about it; it is perfect.' You are saying our tax system is perfect. I will tell you what is wrong with our tax system. The states have a payroll tax and I think it is a disgusting tax. As John Laws always says, 'The more you tax something the less you have of it.' What do we say when a business grows from, say, the threshold in New South Wales of around 14 to 15 employees? We say, 'We are going to tax you.' For what reason? You naughty business—you grew and you employed people. What a terrible thing to do. This is why we say, 'Don't have the discussion.'

I talk to businesses as I travel around and the payroll tax costs them, but let's not discuss that because the tax system is perfect. Ask those union reps on the other side. They have never run a business. They know all about growing business and handling tax—with no experience! They just do what the unions tell them to do. That is all they do. All they are worried about is who writes their cheques—the CFMEU. They just do as they are told by the union movement. It is amazing that they simply do not understand that we must grow our businesses.

When they were in government they had the best terms of trade our country has ever seen and record prices for iron ore, coal and all the exports. Of course, those prices have collapsed dramatically now, which is a terrible shame for those businesses and for the country as a whole. So they had all this money coming in and of course they just blew it. Now they are experts on taxation. Let us have the discussion. Let us see what we can do better to make our economy stronger, to employ more people, to grow businesses and to help to get Labor's debt under control. You just cannot believe how quickly they could have grown such debt and wasted so much money. (Time expired)

Jenny McAllister (NSW, Australian Labor Party) Share this | Link to this | Hansard source

If I was confused at the end of question time about the government's position on the GST, I am afraid I am no more enlightened at this point because I have heard from the other side that there are no plans. I have also heard that everything is on the table. I have heard that perhaps the GST should be on the table. I have heard from Senator Nash that what is required is a balanced, mature, sensible and responsible conversation about tax and I have heard perhaps similar sentiments from others, as they move to have an entirely unbalanced, entirely silly conversation about the sensible measures proposed by the Labor Party to reasonably deal with the very real threat of climate change and the sensible measures proposed by us to rein in smoking rates and to start to address the very horrible costs, both personnel and economic, that smoking inflicts on families in this nation.

The only thing that senators opposite do not want to talk about is the GST because we all know that the GST is on the table. The Prime Minister has told us that everything is on the table, that the GST should be on the table, and we know that people opposite do not want to talk about it because an increase in the GST is not in any way in the interests of Australian people. The Australian people do not want GST extended to fresh fruit and vegetables and to products like Tasmanian apples and Tasmanian salmon. The Australian people do not want and nor is it in their interests for the GST to be extended to health services or to education services. Nor is it in the interests of the Australian people for the GST to be increased from the current 10 per cent to 15 per cent. All of these things are on the table because, despite the denials from those opposite or sometimes the endorsement that everything is on the table, it is very clear that at the heart of the government's agenda on taxation is a reduction in corporate tax at the expense of ordinary people by increasing the GST they currently pay. For those people that will mean that every single time they walk into a supermarket, every time they walk into a shop to get the gear ready for a return to school, every time you go shopping for Christmas presents, every time they go to see a medical officer, changes to the GST of the kind imagined and hoped for by those opposite will be very bad news for Australian families. We can understand it at that visceral level. We can imagine what it means to households but, thanks to ACOSS, we also have the modelling which tells us what it will mean at a national level. The ACOSS modelling tells us that, even in its current form, the GST is regressive, raising almost twice the share of GST from the lowest 20 per cent of household incomes compared to the top 20 per cent. Although high-income earners pay more in dollar terms, the GST has a much bigger impact on low-income households because they have much less income to spend.

So what would happen if we changed the GST along the lines advocated by those opposite? Extending the GST to fresh food would cost an additional two per cent of income for the lowest 20 per cent of households but only the 0.6 per cent of income for those with the highest income. How shameful! This is a measure which absolutely targets the living standards of the lowest 20 per cent of households.

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

That is the plan, though.

Jenny McAllister (NSW, Australian Labor Party) Share this | Link to this | Hansard source

What would happen, Senator Conroy, if we extended the GST to health? It would cost an additional 1.6 per cent of income for the lowest 20 per cent of households but only 0.6 per cent for the highest 20 per cent. And what would happen overall if all these changes were put into place? We would see the lowest 20 per cent paying 4.6 per cent more of their income in tax compared to just 1.7 per cent for the top 20 per cent. This tells us that this is deliberately designed to increase inequality in this country. It is a tax that reaches into the families who people on this side of the chamber will never ever abandoned because we did not come here to increase inequality, we did not come here to punish low-income families and middle-income families and we did not come here to support the GST. So people on the other side of the chamber can vacillate about whether it is on or off the table, but we know that, if it comes before this chamber, senators on this side will be voting against it.

Question agreed to.