Tanya Plibersek (Sydney, Australian Labor Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. NATSEM modelling shows increasing the GST to 15 per cent would mean a family on about $26,000 a year would pay more than 20 per cent of its household income in GST, but a family on about $170,000 a year would pay only 8.8 per cent of its household income on the GST. Why is the Prime Minister intent on putting the highest burden on low- and middle-income households?

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the honourable member for her question, but she knows full-well, as all honourable members do, that the government has no intention of placing inequitable burdens on households with low incomes. Instead of engaging in a discussion—

Ms O'Neil interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Hotham is warned.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

constructively, the opposition is simply asserting is the government is proposing to do something which the government is not proposing to do. We are in the business of carefully considering the numerous options and analyses—including the NATSEM modelling, which we are very familiar with—and all of these matters, and coming to a fully informed decision. So, when the honourable member stands up and says, 'You are going to put a 15 per cent GST on all households without any compensation, and this will damage or relatively damage our lower income households', she is using a completely false premise.

The government is not proposing to do that at all. The honourable member is completely addicted to the old political paradigm of 'rule in, rule out'. She feels that, under the withering cross-examination from the Labor Party, we will wilt and we will rule everything out; that we will be as feeble as the member for Lilley was when he was the Treasurer; that we will rule every issue out and that we will shut down the discussion—

Ms Owens interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Parramatta is warned.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

She feels that we will not allow a debate and that—

Mr Thistlethwaite interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Kingsford Smith is warned.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

we will go off into a back room and come up with some proposal uninformed by any public discussion. Really!

The honourable member's party demonstrated over six years that that is not the way to make public policy—over six dysfunctional years of extremely damaging government for Australia. The focus for us is to be open-minded and consultative and to consider all of these matters. But, as I have said and I will say again: we are committed to reform which will support Australia's economy, support innovation, support jobs and support investment. We are also committed to ensuring that it is fair and that households on lower incomes are not worse off as a result. That is absolutely critical. The honourable member understands that, but she is not prepared to admit it because the truth disappoints her. She would rather create a straw man and tilt at that.