House debates Questions without Notice

Taxation

Tuesday, 19 April 2016 House of Representatives
Chris Bowen

Chris Bowen McMahon, Australian Labor Party, Shadow Treasurer

2:52 pm

My question is to the Prime Minister. Why did the Prime Minister propose that states be allowed to levy their own income taxes?

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Malcolm Turnbull

Malcolm Turnbull Wentworth, Liberal Party, Prime Minister

What we have seen in recent times is state governments urging the federal government to raise the GST and to raise income tax and to give the proceeds to the states to spend. We had a very good and revealing moment of clarity at COAG when I invited the states to consider taking responsibility for raising some taxes themselves, and they did not want to do that. They did not want to raise tax. That is great, because we do not want to raise income tax and neither do they. That means that the only people who want to raise income tax in this chamber are the opposition—the Shadow Treasurer and the Leader of the Opposition.

Hansard source

Tibor Majlath: Yes, there was a moment of clarity when the PM invited the states to consider taking responsibility for raising taxes themselves to pay for public hospitals and schools. Some of us remembered how we were promised in 2000 that the 10% GST would fix all the financial woes of hospitals and schools. The revenue from that tax grew by 92% over the period from 2000 to 2014 well above the rate of inflation in most years, yet it still... Continue reading

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