Helen Polley (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Aged Care) 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 plan for double taxation and to the response of the Tasmanian Treasurer, Mr Gutwein, that the plan would mean 'that each Tasmanian would need to pay around $4,500 per year in additional taxation.' Why does Mr Turnbull want Tasmanians to pay $4,500 more in taxation each year?

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

The Australian government and the Prime Minister have no plan for double taxation. What we have is a plan to keep taxes low. We have a plan to ensure that there is no increase in the overall level of taxation on Australian families. That is our plan. I am not familiar with the remarks made by the Treasurer of Tasmania, but after question time I will look them out. Senator Polley, I am glad you raised this question of taxation, because you are right to apprehend that it is one of the big, big differences between your side of politics and mine. On my side of politics what we want to do is to keep the tax burden low and to ensure that there is no increase in the overall level of taxation upon Australian taxpayers, families and businesses.

The contrast could not be more stark between our attitude and the attitude of the Australian Labor Party. As we heard from Mr Chris Bowen, interviewed by Tony Jones on Lateline as recently as last Thursday night, the Australian Labor Party intends to raise an extra $100 billion from taxpayers—

Senator O'Sullivan interjecting—

Yes, you heard it right, Senator O'Sullivan—an extra $100 billion from Australian taxpayers over the next 10 years. If that were not bad enough, there was no commitment from Mr Bowen to return one dollar of that extra taxation to the budget bottom line. We have our plan for there to be no increase in the overall level of taxation; your plan is to increase taxation.

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

Mr President, I ask a supplementary question. I refer again to Mr Gutwein, who says that under the Prime Minister's double taxation plan 'the largest states will be at a significant advantage.' Why is the Prime Minister proposing a tax plan that sells smaller states like Tasmania down the river?

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

As I said to you in answer to your primary question, I am not familiar with Mr Gutwein's remarks, but I will have a look at them. But as you would be aware, coming from a small state, Senator Polley, the whole point of horizontal fiscal equalisation is to ensure that there is a reasonable level of equivalence between the services delivered to all the states of the Commonwealth and in all regions of the Commonwealth. Since you have raised the subject of taxation, may I remind you that it is your side of politics that has already, in its year of ideas, announced five new tax increases. By the way, that was before Mr Bowen's revealing interview last Thursday night, in which he said that the tax burden on Australians under a Labor government, were there to be one, would increase by $100 billion over the next 10 years. That is your tax policy, Senator Polley. You do not think Australians pay enough tax; we think they pay just enough. (Time expired)

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

Mr President, I ask a further supplementary question. Did the Prime Minister discuss his anti-Tasmanian tax plan with senior Tasmanian backbencher, Senator Abetz, prior to his announcement?

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

I am sure the answer to that question is no, given that there is no such plan. One cannot have a conversation about a non-existent proposition. The only tax plan for which the Turnbull government stands is a plan not to increase the overall level of taxation on Australians. By contrast is the tax plan for which you stand: a tax plan which includes, by the way, doubling the capital gains tax on investments; a tax plan which, because of the negative gearing changes you so recklessly propose, would reduce the value of every home in Australia—the principal asset class of all Australians. Reduce the value of their homes while driving up rents—that is your tax plan. We look forward to the argument.