Brendan Nelson (Bradfield, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. Does the Prime Minister recall the following interview on 16 January 2007 with 3AW’s Neil Mitchell:

MITCHELL: Would you at least remove the GST component on petrol?

RUDD: No, I don’t think you can go that far.

MITCHELL: Why not?

RUDD: I think you’ve got a system when it comes to the application of GST across the general economy you start gouging out more exceptions, I think the taxation system becomes ungovernable.

Why has the Prime Minister now backflipped? Isn’t it the case that this latest review into the GST paid on petrol is just more spin coming from a government more concerned about itself than families buckling under the pressure of crippling petrol prices?

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Families across the country, working Australians—those doing it tough—are suffering from high petrol prices. Therefore it is important that we provide those families and those individuals with whatever help we can through government. We have sought to do that through the budget and we have said, in the period subsequent to the budget, that we will also be examining other ways by which we may be able to assist families.

The second thing I would say is in reference to the Henry commission—again, the one just ridiculed by the Leader of the Opposition, but the one now to be deployed by the Leader of the Opposition to inform his response to the question of long-term payments for those on retirement incomes and pensions. Leave that to one side. If the Leader of the Opposition is having difficulty recalling it, it is what the Leader of the Opposition said in his budget reply. On the question of the Henry commission, the terms of reference for this inquiry were launched by the Treasurer on budget day, from memory. They were laid out in clear and simple terms about the way in which we need to go. At the 2020 Summit, for example, the overwhelming call from business was: it is time the country had a comprehensive look at taxation. The overall taxation arrangements for the Commonwealth, when it goes to company tax, personal tax and the range of other taxation imposts on businesses in the community, need to be looked at, but looked at in a comprehensive manner which also factors in income support and retirement income. All of these things are part of a whole. Therefore, it was important for us to do this in a long-term, systematic, comprehensive manner as opposed to an approach which says: ‘I’ve got a budget reply. I wonder what will be popular. I will pull something off the top shelf.’ And then, within 24 hours, when asked—by the same Neil Mitchell, I seem to recall—‘Was this policy costed?’ the answer was, ‘No, we haven’t costed it yet.’ So I find it remarkable that those opposite could say that this approach of ours is somehow lacking in responsibility and theirs represents the reverse. The Henry commission will look at these matters over time. The Assistant Treasurer was quite explicit, well before the budget reply, about examining the impact and the interrelationship between GST and excise and will be looking at the recommendations of this commission on these matters and other taxation matters in the period ahead.