Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Prime Minister. Last night the Prime Minister said, 'A lot of the people who voted for us were going to feel dudded.' Given the Prime Minister promised on 33 separate occasions before the last election not to change the GST, why won't the Prime Minister rule out dudding the Australian people by increasing the GST to 15 per cent?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

What I am not going to do is to rule out a sensible conversation about a better tax system. I am not going to rule out a sensible conversation about better taxation, a more efficient tax system, a tax system which involves a lower overall burden of tax and a tax system where taxes are lower, simpler and fairer.

I have to say: this government already has good form as a tax-cutting government. We got rid of the carbon tax. Members opposite want to put it back, at $200 a tonne. We got rid of the mining tax. Members opposite want to put it back. We have got rid of the Leader of the Opposition's 'trouser tax', and he wants to bring that back as well—the money that he was 'trousering' out of people's not-often-used bank accounts.

This is a government which is absolutely determined to get the overall burden of tax down. But, within getting taxes down, we are prepared to look at sensible suggestions from the state premiers. We do not rule things out. We do not rule things out in advance. What we do say is that we will not propose any tax change, other than a tax cut, that we do not take to the Australian people at an election, because we keep faith with the people.

I have been asked a few questions about another subject this morning. This is a government which keeps faith with the people. We made a commitment before the last election. We are going to keep that commitment for this term of parliament. And I have to say on the subject that I have been questioned about several times today: come the election, there will be a very clear choice. Members opposite want a politician's choice; this side of the parliament wants a people's choice when it comes to subjects that are as important as that.