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

My question is to the Treasurer. Brian Abbott of St Clair is 39, single and has no children. He works, but does not earn enough to pay income tax. Brian wrote to me on Tuesday. He wrote, 'People relying on their savings, not claiming welfare payments and not paying tax are likely to be significantly impacted by a rise in the GST and not compensated for it.' How would the government compensate people like Brian for increasing the price of everything by jacking the GST up to 15 per cent?

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Fowler for his question. Sorry! It is not the member for Fowler—it is the member for McMahon! I am getting ahead of myself. Maybe you are!

Opposition Members:

Opposition members interjecting—

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

The Treasurer will come to the substance of the question!

Michelle Rowland (Greenway, Australian Labor Party, Shadow Assistant Minister for Communications) Share this | Link to this | Hansard source

Tell us about your preselection!

Anthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Infrastructure and Transport) Share this | Link to this | Hansard source

You're doing—

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

The member for Greenway will stop interjecting! The member for Grayndler will stop interjecting!

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for his question and I refer him to the experience when the Howard-Costello government introduced changes to the tax system. The reason I have to refer to that experience is because—

Ms Chesters interjecting—

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

The member for Bendigo is warned!

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

the government has no such proposal that the opposition is referring to. Those who have raised these issues about the GST are actually state governments and former state Labor premiers. Perhaps the member would like to discuss those issues with some of his colleagues at the state level?

When the tax system was changed back in 2000 there was not one single change: there were many changes. Taxes were cut, peoples' living standards increased and our economy grew. We actually removed the shackles on people which were holding back their economic progress. I do not understand why those opposite would not want to engage in a serious discussion about how that can be achieved again—how you can have a better tax system.

Some 15 years ago, that was the last time we were at risk of the average wage earner in this country going into the second-highest tax bracket. It was 15 years ago! And the Howard-Costello government did something about it. They introduced a range of changes to the tax system, cutting taxes across the board at the state and federal levels to leave people who were working, and also people—and I stress, as a result of those changes—who were not working, in a better position.

I ask those opposite who have raised these issues if they could point us to the evidence from the last time there was major tax system change in this country, which occurred under a coalition government, of the compensation that was put in place by the Howard Costello government not operating? When did it not work and not leave people compensated? The only evidence they will find is that in many cases they were actually overcompensated. They were overcompensated!

So those opposite like to live a few myths, and the myth they are living at the moment is that they do not understand that you can change a tax system and that you can do it to help people—to help Australians who are out there right now working, saving and investing, and who are being held back by the high levels of taxes they are paying. We believe that can be fixed. Those opposite do not even want to turn up to the debate.