Alan Griffin (Bruce, Australian Labor Party, Minister for Veterans' Affairs) Share this | Hansard source

I am blushing at that last entry from the member for Fadden. I thank the honourable members who have made a contribution to this debate on the Tax Laws Amendment (Budget Measures) Bill 2008. This bill makes important improvements to the tax law. It improves the fairness and integrity of the fringe benefits tax system, it restores the intent of the tax treatment of employee share scheme arrangements, and it aligns the period over which taxpayers can write off depreciable in-house software with that for computer hardware. These measures are part of a budget that has delivered significant reform of tax expenditures to improve productivity, fairness and integrity in the tax system. The amendments in this bill help contribute to funding the government’s key priorities for the future.

The revenue raised from the increase in the luxury car taxes helps contribute to a strong surplus for 2008-09 of $21.7 billion or 1.8 per cent of GDP. Such a strong surplus is needed to fight inflation, which has risen to a 16-year high, and to put downward pressure on interest rates. The spendaholics opposite do not understand the importance of a strong surplus to the fight against inflation. They do not understand that some Australians who are doing very well should be asked to bear a greater burden in the fight against inflation. The government want to know where the opposition stands on responsible budgeting. We want to know whether this is part of their $22 billion raid on the surplus. The government also want to know whether they understand that there is an inflation challenge. We have had to take the tough decisions to fund long-term investment in the infrastructure, education and training, and health and hospital needs of the nation. They do not understand that you cannot keep spending without knowing where the money is coming from. Now they want to punch a $22 billion hole in the surplus that we need to fight inflation. We should not be surprised. They are absolutely addicted to the type of reckless spending that has given Australia an inflation problem. They cannot resist a good $22 billion raid on the surplus; old habits die hard. I want to issue this challenge to the Leader of the Opposition and the member for Wentworth. I challenge them to change their ways. I challenge them to say which programs would be cut to pay for their $22 billion raid on the surplus. I challenge them, for once in their political lives, to choose economic responsibility over short-term political opportunism. I challenge them to support this responsible measure and join us in the fight against inflation.

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