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

My question is to the Treasurer. A coalition MP is reported in The Sydney Morning Herald as saying about an increased GST, 'now is the time to do this'. At a time of global uncertainty, sluggish wages growth and slowing growth in China, is now really the time to hit the Australian economy with a 15 per cent GST; and what impact would rising prices have on demand in our economy?

Mr Nikolic interjecting—

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

The member for Bass will cease interjecting.

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

As those opposite know, the government has put forward no preferred proposal on the issue of a consumption tax or any other matters. What we have been doing very clearly is engaging with—

Mr Thistlethwaite interjecting—

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

The member for Kingsford Smith will cease interjecting. The member for Hotham is warned!

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

the Australian people and setting out what some of the challenges are that we need to address. One of those challenges of course is how we can try and ease the burden of those who are working hard out there, being part of the transition of our economy to set up the jobs and the growth that is going to support us for the many years to come in these difficult circumstances. In those difficult circumstances, you have to make calibrated decisions about what are the right things to do with your tax mix.

The government has not come to any settled position on this issue, because we are working through the details of the many things you have to trade off in that process. But I can give you this assurance: when we do make a decision on this, we will make a decision about what is right for the Australian economy, what is the right thing for the country and what is the right thing for the national interest. Then we will pursue that policy to the next election and implement it beyond, if we are given the trust of the Australian people once more. We will do what is right for the Australian economy and we will work through these issues. But what is not right for the Australian economy is what the former Treasurer and the former Prime Minister were saying, which was the policy of those opposite—to tax and spend.

Let's not be unsure about the policy of those opposite to tax and spend. The member for Fraser was asked on Sky News: 'What is the mix of your spending and saving? Is it 80-20?' 'The bulk of it is higher taxes,' said Mr Speers. And the member for Fraser said, 'You're right. It's taxes. You're right to say that the majority comes from tax.' For all their blustering about their savings today, the member for Fraser could not even tell us what the budget and forward estimates savings—or the bigger item, which is taxes—was going to be over four years. He could not even nominate it, but what I can tell you is that it is all tax.

Dr Leigh interjecting—

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

The member for Fraser will not be provoked.

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

It is all tax, because they are a taxing, spending, borrowing alternative.