Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Cormann. Does addressing bracket creep through tax cuts remain government policy?

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

As we have said consistently, of course we always would like taxes to be as low as possible. In the context of the current budget, we will do the best we can to ensure that taxes are as low as possible, but of course we will make judgements, given the fiscal conditions we are in, given where the budget is at, given where the economy is at—given a whole range of factors. We will make judgements on what we can do to ensure that taxes are as low as possible on the basis of what we can reasonably afford.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Is bracket creep still a 'job killer' and a 'growth killer', as the Treasurer said last month?

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

Bracket creep is a problem. Bracket creep is a drag on growth. I have actually been asked this sort of question here before. Right now, bracket creep, to the extent that it is a problem—and it is—is less of a problem than it has been, because of lower wage inflation. If you look at the most recent ABS statistics, you can see that wage inflation is the lowest it has been since records were first kept—since 1988. So obviously that is one of the factors we have to take into account as we make judgements about what is the best possible approach we can take, given the budget position we are in, and what we can responsibly afford in the context of our current budget. These are the sorts of judgements the government is currently making.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Was the manager of budget business right when he told ABC Radio today that the government's tax plan would be released before the budget?

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

Our approach to the tax system, as I have already indicated, will of course be finalised in the context of the budget, and relevant announcements will be made when we are ready to make those announcements.