Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Hansard source

would mean of course that a person who receives an income tax cut and has more money in his or her pocket will also face a higher cost of living, and those people who are entirely dependent on welfare payments would need to be fully compensated, although their pensions would go up with the CPI. Many of Australians—part pensioners, self-funded retirees—have incomes that either are not taxed or are taxed at very low rates, and they would need to be compensated. But compensation is a complex issue, and honourable members opposite understand that; they addressed that with the compensation for the carbon tax.

Now, any changes to the tax system, from our perspective, have to achieve at least three things. Firstly, they have to drive growth and jobs—that is No. 1. Secondly, they have to be fair—that is absolutely critical. And, thirdly, the complexity associated with them has to be justified in terms of a productivity output. The position of the federal Labor Party, on the other hand, in refusing to participate in this debate, means that we are having a national debate in which the alternative government does not play a part. We are seeking to have a considered discussion on tax reform. It is a very big lever affecting the economy. We are determined to ensure that it works effectively.

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