Helen Polley (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Aged Care) Share this | Hansard source

I move:

That the Senate opposes the plan by the Turnbull government to increase the goods and services tax rate to 15 per cent and broaden its base to include fresh food, education and health.

I was going to quote the former Acting Deputy President, Senator Bernardi, who has just left the chair. So I will start with that quote before he leaves the chamber! Senator Bernardi has, in fact, come out against the proposed increase to the GST:

Electorally, it's unpopular.

…   …   …

Wherever I go, no-one is saying yes, we should be putting taxes up …

I agree with Senator Bernardi, and it is not always that unusual. There are a number of issues that I agree with the good senator on.

He is right on this occasion, because every Australian knows what an increase to the GST is going to mean to them and to their families. To have an increase to the GST that is going to apply to everything—that is everything that we consume: any services, fresh food, fresh vegetables, education and health—is going to hurt those who are most vulnerable in our community.

There are other colleagues of Senator Bernardi who have also come out, and I would like to quote Senator Canavan. He also has admitted that there is only so much that raising the GST could achieve and that it is only going to raise a finite amount of money. Again—I agree with him.

Even from my home state of Tasmania, the federal member for Lyons, Eric Hutchinson, has also been quoted through the media today. He said that an increase to the GST will do nothing for his constituents. Again, I agree with a member of this government.

But it appears to me that the Prime Minister, Malcolm Turnbull, has a plan to increase the GST to 15 per cent. He said only this week that it is on the table. Those who come into this chamber and the other place, saying that this is just scaremongering from the opposition and others, are quite wrong. The Prime Minister could very easily dismiss the notion of increasing the GST by saying there will be no increase to the GST, just as Labor has said we will never, ever agree or support the increase of the GST to 15 per cent. We cannot be clearer. The Australian people understand very clearly where the Labor Party sits on this issue. I think that after two years a government should have its own plan for reforming the economy and the taxation system, but we are still waiting for those opposite to come forth with any sort of strategy other than a lazy policy which would be the quick and easy way for them to slug the workers and most vulnerable in this country by increasing the GST to 15 per cent.

I would like to remind the Prime Minister that we will not be at the forefront of innovation if we cannot ensure that every child in this country has equal access to good education outcomes. Getting a good education in this country should never rely on how big a credit card your parents have. Every child in this country deserves the best education that we can provide to them. Every child should have the opportunity to reach their full potential. If the GST is increased to 15 per cent and goes across the board as far as education is concerned, there will be some children who miss out on the opportunities that they deserve. If people in this country do not have the best education that we can provide to them and that we have the responsibility to provide, will not get the high-paying jobs, they will not have equal opportunity and they will not have the opportunity to fulfil their potential.

An increase of the GST to 15 per cent will diminish equal opportunity and do nothing to create jobs for the economy. This is the kind of economic leadership being painted by the Liberal government, and I have to say it is a pretty awful-looking picture. Those on this side know that the consequence of raising and broadening the GST will be an increase to the price of everything. Every single one of my constituents will have to pay more. Every single one of my constituents who are struggling now to make ends meet will have to pay more. It will cost my constituents more every day to put food on their table and to buy their kids schoolbooks. It will cost them more to go to visit their GP and other doctors. We know that electricity and gas prices will increase. We also know about the attack that this government has already made in trying to make it more difficult for those people who need to have regular pathology tests. We know the risk to the Australian community if people have to think twice about whether or not to go see their doctor, have their pathology tests or go to the pharmacy to get the medication that they want. This will have an enormous impact on our community.

With my responsibility as shadow parliamentary secretary for aged care, it astounds me that this government continues to show a disregard for older Australians. Since the time they took government two years ago, they have never put their priority onto aged care and ageing issues in this country. We have had enormous changes when it comes to aged care in terms of payment now for services to keep people in their homes. We all know older Australians want to stay in their own home as long as possible. We know it was the Labor government that did the hard work and the heavy lifting to bring about real policy change around secure the future of older Australians when it comes to residential care and care while keeping people in their homes. If they now have to turn around and adjust to having to pay more for their services in their home and then on top of that a 15 per cent GST on that care, that will in some cases make it extremely difficult for those people to have the care that they need. They will think twice about having those services provided to them. It will cost more to go into residential care with an increase of 15 per cent for GST.

That is without the impact that it will have on every Australian who receives a pension. They are already on a very limited income. They juggle their budget on a daily basis to make ends meet. This government, because they are lazy when it comes to having any vision or taxation reform plan, will just slug those who can least afford it. Why should those people who are already working and are sometimes already referred to as the working poor, who find it very hard to manage their budget and support their family the way they would like to even though they are working hard every single day, have to pay more? They have to find more money to be able to put fresh fruit in their children's lunchboxes. To me, that is a burden that our community will not accept.

I have spoken before in this place about the experience of previous Liberal governments who first wanted to introduce the GST and then the ramifications for their members around this country after they did. That is why we now have the backbench showing a little bit of fortitude by coming out and speaking against the government's plan. But it is not enough to speak up because you think you might be under threat; you need to have that argument within your caucus.

In my home state of Tasmania, we have disproportionately more low-income households, so the impact on Tasmanian families and individuals is going to be felt very hard, with the cost to those individuals and families being up to and perhaps in excess of $6½ thousand. As I said, Mr Turnbull's 15 per cent GST on everything will disadvantage those who can least afford it. If you earn a good income, like I do in this place, you can afford to pay a bit more. That is fair enough. But why are those on the government benches protecting multinational companies? Why are they protecting them and making them their best friends, as usual, while at the same time attacking ordinary, hardworking Australians? Why are they are attacking older Australians? Why are they continuing to attack Australian pensioners? Why aren't they going after those who can afford to pay more and should be paying more taxation in this country? I have not heard an argument from those opposite that holds any weight.

We have issues in this country around health. There is never enough money that we all want to spend. It does not matter what persuasion you are on the government benches when it comes to health. Health costs continue to rise. But to put a 15 per cent GST on health services is blatantly wrong. And, as I said, the size of your credit card should not determine the educational outcomes that your children have. The size of your credit card should not determine whether or not you have pathology tests. The size of your credit card should not determine what health outcomes you have. We have an increase in obesity in this country, and we had the Minister for Health not so long ago saying, 'I don't want to get involved in the debate about the GST.' Well, she should be involved, and I am disappointed that she has not said anything about the impact that a 15 per cent GST on fresh food will have, when we should be encouraging people to take better care of their health, eat healthily and have regular check-ups with their GP. She is failing the Australian people on all fronts.

We have said time and time again that we will not support the GST increase. In opinion polls that people refer to from time to time in this place, the Australian community are voicing their concerns and saying that, no, they will not accept a GST increase. We hear those opposite in this chamber talking on a regular basis about being an innovative, adult, nimble government. Well, show that you are an adult government by coming up with some decent tax reform so that we can have a debate. Rule out, once and for all, that there is going to be an increase to the GST, on everything. Listen to your electorates. I urge the Prime Minister to listen to the Australian community, because we on this side will continue to campaign every day till we stop any notion of this government bringing legislation forward to increase the GST or putting more and more pressure on the states to agree to a GST increase because they are starving them of funds for health and education in this country. Show some vision. Show some leadership when it comes to taxation in this country. Show some compassion for those in the community who are doing it the toughest.