Senate debates
Thursday, 11 March 2010
Questions without Notice
Paid Parental Leave
2:07 pm
Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source
My question is to the Assistant Treasurer, Senator Sherry. Can the Assistant Treasurer outline to the Senate the Rudd government’s commitment on taxation? How does this commitment on taxation affect the Rudd government’s paid parental leave plan? How does this responsible and budgeted paid parental—
John Hogg (President) Share this | Link to this | Hansard source
Order, on both sides! The time for debating the issue is post question time.
Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source
Can the Assistant Treasurer outline to the Senate the Rudd government’s commitment on taxation? How does this commitment on taxation affect the Rudd government’s paid parental leave plan? How does this responsible and budgeted paid parental leave plan compare with the alternatives? How would any of those alternatives impact on the economy, families and businesses? (Time expired)
Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source
As has been said on many occasions, the Rudd Labor government remain committed to keeping taxation as a share of gross domestic product below the level we inherited, on average—that is, 23.6 per cent of gross domestic product in 2007-08. That is the level the Liberal-National Party left us and that is the level we have committed to keep taxation below. Of course, we saw earlier this week an announcement by the opposition leader, Mr Abbott, to introduce a big new tax to fund his parental leave proposal. The Rudd Labor government have decided not to go down the road of a big new tax to support our parental leave proposal. We have adopted the recommendations of the Productivity Commission. The Productivity Commission made three key recommendations. It certainly did not recommend a big new tax. I can assure the Liberal-National Party of that. It recommended there be a payment of 18 weeks duration financed by the government on behalf of the broader community, not a big new tax, and that in most cases employers would make the payment. It is fully costed, fully funded and fiscally and economically responsible.
On the other hand, Mr Abbott swore black and blue eight years ago that there would be a paid parental leave scheme ‘over his dead body’. That was his commitment eight years ago. He has been swearing black and blue since he became Leader of the Opposition, at the end of last year, that there would be no new taxes and no increases in existing taxes. Barely a day has gone by when Mr Abbott has not said there would be no new taxes and no increases in existing taxes.
George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source
What about the super surcharge?
Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source
I am glad you reminded me of the super surcharge. There was some confusion in the opposition as to whether or not it was a tax. Is it a tax? (Time expired)
Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source
Mr President, I ask a supplementary question. How is the government supporting businesses through taxation policy to help them recover from the global recession, to assist the Australian economy to grow and to keep Australians in jobs?
Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source
The last thing any sector of business in the Australian economy needs is a big new tax during this period of recovery.
John Hogg (President) Share this | Link to this | Hansard source
Order! When there is silence on both sides, we will proceed.
John Hogg (President) Share this | Link to this | Hansard source
Order! On both sides I need silence.
Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source
There was apparently no consultation by Mr Abbott with his colleagues about this big new tax. In fact, there was considerable confusion about whether or not it was a tax.
John Hogg (President) Share this | Link to this | Hansard source
Order, on both sides! There is a time for debating this question at the end of question time.
Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source
I have to give credit to Senator Joyce. He was asked, ‘Is it a new tax?’ He said: ‘Um, ah, er, ah, yes. It is a new tax. It’s a tax.’ However, when Dr Stone in the other place was asked whether it was worth breaking a promise about a tax, she said: ‘Well, we don’t call it a tax. We call it an investment in human capital.’ That is the latest name for a new tax. We should be thankful that Dr Stone did not call it a surcharge. Surcharge, tax, investment in human capital—there is total confusion on the other side, understandably, about whether or not it is a tax. (Time expired)
Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source
Mr President, I ask a further supplementary question. Can the Assistant Treasurer give an assurance that the government’s paid parental scheme will not mean a tax hike for businesses? Can the same be said for the alternative schemes?
Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source
I was just reflecting on some of the confusion in the opposition after Mr Abbott’s lack of consultation about whether it was a tax, a levy or a surcharge. It makes me wish for the days of Rod Kemp. It really does. Tax, levy, surcharge—the memory ticks over. I wish the opposition could get it right. Is it a tax or not?
What we do not need this time with the economy recovering is a big new tax. The Labor government has put forward a responsible parental leave plan. Those opposite did nothing on parental leave for almost 12 years. Mr Abbott said that there would be a parental leave scheme over his dead body; there would be no new taxes, no increase in existing taxes. Of course, this week, he announces a big new tax to fund his parental leave scheme. This new tax is actually $11 billion over the forward estimates. (Time expired)