Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

My question is to the Treasurer. Why is the government preparing to slug farm employees, harvesting and other contractors who are already battling the drought, and hardworking doctors and vets serving rural communities, with an extra tax, ranging from $1,100 to $4,050, on the cost of a Toyota LandCruiser?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I thank the honourable member for his question. I gather that the opposition feel compelled to continue to justify their vandalism of the government’s surplus up in the Senate. It is the case that the government’s proposal does not affect dramatically the bulk of purchases of cars in the rural sector.

Joe Hockey (North Sydney, Liberal Party, Manager of Opposition Business in the House) Share this | Link to this | Hansard source

What about farm workers?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

So a ute is a luxury car, is it? Mr Speaker, those opposite introduced the luxury car tax. Let us be very clear about where it came from and what its origins were. Let us be very clear that we increased it in the last budget as a measure to build a strong surplus. I believe it was a fair measure—a small amount of money that many people buying luxury cars could afford to pay. We have had a constructive discussion in the Senate with the minor parties and the Greens and, as a consequence of that, this bill has passed, despite the reckless—

Opposition Members:

Opposition members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The Treasurer having the call is not an opportunity for nine or 10 people on the left to talk over him at the same time.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

All the chatter is to hide their deep embarrassment about their activities in the Senate. They are up there defending Porsche drivers, up there defending the drivers of luxury cars, against the interests of the Australian people and lower interest rates for working families and farmers. That has been the consequence of their actions in the Senate. Interest rates will be higher for longer as a consequence of their attempts to raid the surplus and also the reckless spending that they have now committed to. The Leader of the Opposition, in a 20-minute press conference on day 1, spent $20 billion—$6 billion in raiding the surplus in the budget and a further $14 billion. The opposition now have the hide to come into the House and complain that a few people buying top-end vehicles are paying too much tax.

We reached a sensible arrangement with the minor parties in the Senate. There has been more economic responsibility in the little fingers of the Greens and the Independents and the minor parties in the Senate than there has been in the Liberal and National parties. This is going to continue, apparently. The Leader of the Opposition is going to pay a very high price if he is going to continue to wreck the budget in the Senate, because it will be clear to everybody who is economically irresponsible in this country and who has a responsible approach to budget management. The IMF have given this government a very big tick today, and the opposition is trying to demolish it.