Joe Bullock (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Cormann. I refer to the Treasurer's commitment that a higher GST will not lead to an increase in the total tax-take and ask: will every additional dollar raised by a higher GST be spent on tax cuts and compensation?

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

The government has not made a decision to increase the rate of the GST. As such, I reject the premise of the question. What the government is focused on are measures to make our tax system more growth-friendly so we can strengthen growth and create more jobs.

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

Senator Bullock, a supplementary question.

Joe Bullock (WA, Australian Labor Party) Share this | Link to this | Hansard source

I am surprised, Mr President, given that the premise of the question was a commitment by the Treasurer; nevertheless, the finance minister can reject it. My supplementary question is will the tax to GDP ratio increase faster than projected in the last budget as a result of the Liberal's GST tax hike?

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

I, again, refer to the premise of the question. The government has not made a decision to increase the rate of the GST. As such the question is hypothetical.

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

Senator Bullock, a final supplementary question.

Joe Bullock (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, in the same vein, I am afraid. Will there be an increase in the government's spending as a percentage of GDP due to the Liberal's GST tax hike?

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

I refer the honourable senator to my previous two answers.