Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Treasurer. Just three months ago when I asked if the GST should be removed from sanitary products the Treasurer said, 'It probably should, yes. The answer is yes.' Why doesn't the Treasurer shows some leadership, stop the chaos and make the additional GST from digital downloads conditional on removing the GST from tampons and pads?

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I have been waiting two weeks for a GST question, and why? Because I have got some great stuff here. The GST question from the Labor Party—

Opposition Members:

Opposition members interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

Members on my left will cease interjecting.

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

It is quite interesting. In relation to sanitary products, as I said, it was raised with me—it was raised, in fact, by a number of states—

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

On television.

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

No. Actually it was raised by some states, and they asked whether it could be included. I said I am happy to put it on the agenda. In that regard, I did. Quite clearly a number of states are opposed to that. What we have always said is that the only way you are going to make any changes to the GST is if all the states and territories agree. So it is in their court, and it will be decided tomorrow by the states and territories. In relation to the GST, the Labor Party have been making a number of unfounded accusations about the GST more recently. In particular, they are asking us what we would do. I have said, as the Prime Minister has said repeatedly: we are going through a tax reform process. We want to have a proper discussion with the Australian people about how to make sure that the taxation system is best suited for the 21st century. We think it is hugely important to have a contemporary taxation system for the new economy. But the Labor Party have been running around, as they have tended to do lately, saying one thing to one group and another thing to another group.

Government members interjecting—

I know it is hard to believe. I know. I know. I am shocking you all. It is shocking and quite unbelievable, but it is true. Of course, nothing is more surprising than the Labor Party saying we have secret plans on the GST. But I went back to Treasury and I said, 'What did the Labor Party do when they were in government—specifically the member for McMahon when he was Treasurer?' And they said, 'They modelled an increase in the GST.' It happened to be in July 2013. But the only modelling we have been able to find is one called 'Scenario 3: increase the GST to 12½ per cent and broaden the base'. So it begs the question: what was scenario 1? What was scenario 2? What about scenarios 4 and 5 and 6? It was the Labor Party that were modelling an increase in the GST, a broadening of the base of the GST, and now, with deep hypocrisy, they are campaigning against a proper discussion on tax. Once again, it illustrates that a party without leadership, like the modern Labor Party—that stands for nothing, that believes in nothing—can only be believed to be a hypocrite.