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

My question is to the Minister representing the Prime Minister, Senator Brandis. I refer to the Prime Minister's announcement at Penrith oval on 30 March that 'the federal government will reduce our income tax by an agreed percentage and allow state governments to levy an income tax'. Was this policy subject to full cabinet consideration before it was announced?

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

Yes, Senator, it was.

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

Mr President, I ask a supplementary question. I again refer to the Prime Minister's concession that under his plan for state governments to levy income tax states should be free to 'raise it'. Can the minister explain to the Senate why the Prime Minister thinks that Australians should pay more income tax in some states than others?

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

Senator Urquhart, that is not the Prime Minister's view and that was not the policy that he raised for discussion with first ministers at COAG. The proposal that he raised for discussion with first ministers at COAG was a policy which would have enabled the state governments to levy an income tax in circumstances in which the Commonwealth withdrew an equivalent amount of income tax so as not to result in any net increase in income tax for Australians. Senator Urquhart, as you know, that proposal was raised with first ministers and, with the exception of the Premier of Western Australia, Mr Barnett, that proposal did not find favour with first ministers and was not proceeded with.

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

Mr President, I ask a further supplementary question. I refer to the Prime Minister's plan for double taxation as well as his plan for GST, superannuation, negative gearing, capital gains and income tax and company tax changes. Is this what Mr Turnbull meant when he said he would provide the economic leadership that Mr Abbott failed to deliver?

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

Senator Urquhart, as you know, we have had a very lively debate in this country in recent months about tax policy. We do not walk away from that. We believe that the Australian public are entitled to have a government that confronts issues honestly and with candour, raises issues for public discussion, looks and listens to arguments from all points of view and ultimately resolves, one way or the other, whether to pursue matters or not to pursue them. That is what having an open public discussion means. We are not afraid of that. That is the way good public policy is developed—in an open, transparent discussion with the Australian people.