Andrew Leigh (Fraser, Australian Labor Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Australia faces some significant economic challenges right now: growth sitting below trend, inequality at a 75-year high and housing affordability increasingly being pushed out of reach for young Australians. And yet the government's answer to tax reform—raising the GST—makes none of these problems better and all of them worse.

We know from the government's own Re:think paper that the GST is no more efficient than the income tax. Indeed, the Re:think tax paper says that if you raise $5 of revenue then you destroy $1 of economic activity through the income tax and that if you raise $5 of GST you then destroy $1 of economic activity.

But, while the GST is no more efficient than the income tax, it is certainly less equitable. NATSEM modelling suggests that a 15 per cent GST would cost seven per cent of disposable income for the poorest households but just three per cent for the richest households. That is because more affluent Australians have higher savings rates while lower income Australians are tending to borrow. If we really want serious tax reform, we need reforms such as those that Labor has put on the table: getting rid of loopholes, fairly taxing multinationals and fairly taxing superannuation.

The government has now kicked off its tax reform agenda to the third year of this government, showing it is not serious about tax reform. Lucy Edington-Chapman, Carina Nixon, Gabriella Brinks, Layla Bitolkoski, Maddi Brittain and the team captain, Stephanie Seed, are training eight times a week in their bid to ensure that the world championship title remains in Cairns. These girls are quite incredible. I had the pleasure of meeting them last year when they returned from Brazil. Their dedication was impressive—not just to getting to the competition but also to training and fundraising beforehand.

In Indonesia, they will face four events: a quick-time sprint challenge, a physical knockout head-to-head, a technical slalom course, and a downriver marathon event. There is no doubt that this is an extreme sport. The girls have to be continually at the top of their game to avoid flipping and being caught under rocks and in dangerous currents. Safety always comes first, but good teamwork and communication is paramount when making split-second decisions. Their success is evidence of this, as well as of the guidance from their coach, Wagner Torres. I wish the girls all the very best in bringing the world championship back to Cairns for the second time. They have done an outstanding job in their chosen sport. (Time expired)

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

In accordance with standing order 43, the time for members' statements has concluded.