Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

Senator Day is quite right that there is an expectation that a lot government payments are indexed to inflation or above that. That is one of the reasons why we have put forward the measure for regular indexation of the fuel excise. At the moment, the value of the fuel excise is eroded through inflation. Of course, the Greens now are the champions of regular reductions in the real value of the excise on fuel and they are the champions of big oil! I hear what you are saying, Senator Day. It is a suggestion I would encourage you to put forward to the tax white paper review process so it can be considered along with other reform proposals and priorities. The important point here, though, is that if we want to provide income tax relief, and if we want to provide for a more competitive tax system where people across Australia have got a better opportunity to get ahead, we need to do that from a position of fiscal strength and we need to do that from a position where we have our spending under control.