Carol Brown (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Families and Payments) Share this | Link to this | Hansard source

My question is the Minister representing the Prime Minister, Senator Brandis. I refer to the Prime Minister's announcement to the Western Australian Liberal Party that the government would change the arrangements for the distribution of GST revenue to establish 'a percentage floor below which no state receipts can fall'. Did the Prime Minister discuss his plan with the Treasurer or the finance minister before making his announcement?

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

Senator Brown, I am familiar with the Prime Minister's remarks to the Western Australian Liberal Party state conference in which he made a very general, commonsense reflection that at the appropriate time we should create a prospective floor, once the system has been rebalanced. This rebalancing has not happened yet and will not for several years yet. Even on Western Australia's own numbers, Western Australia's GST relativity will take a number of years to return to its pre-2009 levels. It is expected the matter will be discussed at the next Council on Federal Financial Relations meeting. It is a long-overdue matter, the addressing—

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

Pause the clock. Point of order, Senator Wong?

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

There really was only one question from Senator Brown: did the Prime Minister discuss his plan with the Treasurer or the finance minister before making his announcement?

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

That is correct. That was the question. However, I do believe the Attorney-General has been given a very good background and is addressing the point, and I am sure the Attorney-General will come to the question.

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

Let me continue—and I will of course come directly to the point of your question, Senator Brown, I can assure you. It is a long-overdue matter to address, and we will have a window to do so in the next few years and, when that window opens, we should seize that. There is no doubt that the GST formula, when it was originally devised, did not contemplate wild swings in shares like we have seen in relation to Western Australia. This important reform will preserve the integrity of the horizontal fiscal equalisation system while giving all states more certainty and making it easier to plan and budget. Now, Senator Brown, as in relation to all matters which are the subject of announcements by the Prime Minister, the appropriate consultations, including with senior ministers, were of course engaged in.

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

Senator Brown, a supplementary question?

Carol Brown (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Families and Payments) Share this | Link to this | Hansard source

My first supplementary question is: was the Prime Minister's plan, then, also taken to the cabinet before being announced; and, if so, when?

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

Senator Brown, we do not publicly discuss the proceedings of cabinet. I thought you are aware of that. You are asking me directly what was discussed in cabinet, and that is not a question that I am at liberty to answer.

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

Senator Brown, a final supplementary question?

Carol Brown (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Families and Payments) Share this | Link to this | Hansard source

I will take that as a no. I refer to the statement of Senators Parry, Bushby, Abetz and Duniam, who are 'united in their support of Premier Will Hodgman's positon, with all four Tasmanian Liberal Senators opposed to any changes to the GST distribution formula'. Have Senator Abetz and his colleagues nobbled the Prime Minister's plan?

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

Mr President, I think I am being asked to reflect upon your observations in a different character!

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

Be careful how you reflect on the chair, then, Senator!

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

What we are talking about, Senator Brown, is a discussion. We are talking about a discussion. As I said, Senator Brown, in my answer to your primary question, this is a matter that will be developed over years—over years—while the GST relative shares are rebalanced. It is a discussion in which, by the way, your side of politics has also participated, because during the 2016 election campaign, standing right beside Bill Shorten, the leader of the Labor Party in Western Australia, Mr McGowan, advocated for a floor under the GST and an adjustment of the GST relativities so as to favour— (Time expired)