Cory Bernardi (SA, Australian Conservatives) Share this | Link to this | Hansard source

My question is to the Minister for Finance, representing the Treasurer, Senator Cormann. In my home state of South Australia this week marks the closure of the Holden car-manufacturing plant, bringing an end to the Australian car-manufacturing era. Yet Australia continues to impose import tariffs on cars which, on those made in Thailand alone, costs car buyers over $320 million a year. The tax burden includes an estimated $1,000 on the Ford Ranger, Ford Focus, Toyota Corolla, Mazda 2, Mazda CX-3, Honda Civic, Honda Jazz and Honda CR-V and estimated $1,300 on the Toyota Hilux, Mitsubishi Triton, Holden Colorado and Nissan Navara. With no basis for retaining protections for a non-existent automotive industry, will the government now ease the tax burden on Australian car purchasers and axe these car taxes?

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

Thank you, Senator Bernardi, for that question. I'm interested to hear Labor senators cheer you on, Senator Bernardi, suggesting that there should be a reduction in taxes in relation to car imports. Let me just say, right up front: the government hasn't got any plans, at present, to change the taxation rate.

Don Farrell (SA, Australian Labor Party, Shadow Minister for the Centenary of ANZAC) Share this | Link to this | Hansard source

A point of order, President: there was nobody on the Labor side who was cheering, Senator Bernardi. We were making the point that this government closed Holden.

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

There is no point of order.

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

On this side of the chamber we remember the decisions that were made under Labor.

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

A point of order: I have never cheered Senator Bernardi in my life.

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

That is not a point of order either, Senator Cameron.

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

Let me just say right up front that the government doesn't have any plans at present to reduce the level of taxation that applies to the purchase of cars. Of course, on this side of the chamber, the coalition is always committed to ensuring that the tax burden is as low as possible—as high as necessary, but also as low as possible. We always focus on making sure that taxation arrangements are as efficient as possible, as least distorting on the economy as possible and that they are also fair.

Our priority at the moment, as a government, is to reduce the tax burden on business. Eighty seven per cent of Australians are employed in the private sector. By making sure that our business tax rate is internationally competitive we are able to attract additional investment and we are able to ensure that our economy continues to grow and we are able to ensure that businesses which are more successful can hire more Australians and pay them better wages. So our focus is on making our tax system more growth friendly, so that we can encourage business to be more successful and more profitable so that Australian workers have the best possible opportunity to get ahead. We do not have any plans at present along the lines that Senator Bernardi is asking about.

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

Senator Bernardi, a supplementary question?

Cory Bernardi (SA, Australian Conservatives) Share this | Link to this | Hansard source

I can confirm that Senator Cameron is internally cheering me on all the time. I'm grateful that the minister has outlined his commitment to lowering taxes for business, but I note that an often used business vehicle is the Toyota LandCruiser, which attracts an estimated $3,000 in import taxes, the type of which are collectively costing Australian car buyers over $650 million this financial year alone. That is over and above the tariff impost that I referred to in my previous question. I ask the minister: will you please review and repeal all taxes on imported motor vehicles?

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

I believe I've answered the main part of that question. As I've indicated the government doesn't have any plans to change taxation arrangements as they apply to the purchase of motor vehicles.

What I would say is that the government is pursuing and is committed to continuing to pursue a very ambitious free trade agenda. We understand that open markets and free trade help Australian exporting businesses to be more successful in key markets around the world, including in Japan, Korea, China and the like, which is where we've been able the finalise very attractive free trade agreements. Australian consumers are able to get better access at better prices to high-quality products from places like Japan, South Korea and other places around the world. So the government always continues to ensure that—(Time expired).

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

Senator Bernardi, a final supplementary question.

Cory Bernardi (SA, Australian Conservatives) Share this | Link to this | Hansard source

Minister, given that your government is the highest taxing government in Australian history, if you truly are committed to providing taxation relief to all Australians, would you offer relief to car buyers from taxes that are now nothing more than a revenue-raising measure?

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

I reject the premise of the question. If Senator Bernardi is concerned about the levels of taxation in Australia, he should be very concerned about the possibility that Bill Shorten could become Prime Minister of Australia, because the Labor Party have already said that they would get rid of the current cap on tax revenue as a share of GDP. They have already indicated that they would get rid of the speed limit when it comes to revenue raising by government. We have imposed on ourselves a cap of 23.9 per cent on tax revenue as a share of GDP. Labor is proposing to blow that out of the water to impose an extra $150 billion worth of taxes on the Australian economy, which would mean that Australian businesses would be less successful. It would mean there would be less investment, fewer jobs and lower wages. If you are concerned about supporting the side of politics that supports lower taxes, I would encourage you to continue to support, with your preferences, the Liberal and National parties. (Time expired)