Peter Slipper (Fisher, Liberal Party) Share this | Hansard source

I am someone who, for a long time, has believed that the tax rates in Australia are too high. I am really pleased that, in the budget this year, income tax cuts have again been factored in to benefit the majority of taxpayers. It is obvious that the government of the day has to calculate the income that is needed to provide services to the community; however, it ought to always be a primary aim of government to reduce taxes by as much as possible so that one is able to give more discretionary spending to the people who produce the income from which taxes are paid. Wherever possible, it is vital to reduce taxes because, when you reduce taxes, you create incentive. The lower the tax rate, the more people will be prepared to work harder and longer to achieve more.

Historically—unfortunately—when Australia had a 60c in the dollar tax rate, people simply were not prepared to work. This government, this Treasurer and this Prime Minister have led the charge in reducing taxes. The decision made in the budget to further reduce taxes—to bring in income tax cuts for the majority of taxpayers—is yet another big stride forward and gives the taxpayers of Australia a greater opportunity to choose how to spend the money they earn. These tax cuts were possible because of sound economic management since 1996, when the Howard government was elected to office. Tax cuts were not the only initiative contained in the budget delivered by the Treasurer this month. The government brought in a cash surplus of $10.6 billion—this government’s 10th surplus since 1996. A strong budget enables continuing investment to improve Australia’s long-term economic growth and prosperity.

The Australian Labor Party is trying to masquerade itself as financially responsible, but one knows that, historically, whenever the Labor Party has been in charge of the Treasury benches—whether at state or federal level—there has been a diminution in fiscal responsibility and the government of the day spends more than it earns.

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