Senate debates

Tuesday, 27 March 2018

Questions without Notice

Taxation

2:28 pm

Photo of Anne UrquhartAnne Urquhart (Tasmania, Australian Labor Party) Share this | | Hansard source

My question is to the Minister representing the Minister for Social Services, Senator Fierravanti-Wells. Welfare groups including Anglicare, Oxfam Australia, the Salvation Army and the Australian Council of Social Service have said:

We believe that a company tax cut is a mistake while almost 3 million people live in poverty.

How is it fair that, at the same time, the Turnbull government's freeze on family tax benefits will leave a family with a household income of $60,000 a year and two primary-school aged children around $440 a year worse off, while giving big business a $65 billion handout?

2:29 pm

Photo of Concetta Fierravanti-WellsConcetta Fierravanti-Wells (NSW, Liberal Party, Minister for International Development and the Pacific) Share this | | Hansard source

The reasons that we are giving company tax cuts—and what we are proposing to do—is to create more jobs in the economy. And the best form of welfare is a job. We all know that. You keep saying that's the situation, but you don't actually believe it. When it comes to pensioners, we won't be introducing policies that are going to hurt them and make them worse off. We are not going to increase taxes on part-pensioners; we are not going to do it to self-funded retirees. This government is making sure that we have a sustainable budget, which means that we will be able to look after those people who are most in need. We will also encourage people off welfare and into work. This is the best thing that we can do. When it comes to pensioners, we will not be introducing the types of policies that those opposite have just released, which will make pensioners and part-pensioners worse off. All you want to do is tax and spend. We want to make sure that we get people working, that we encourage people to work, that we are encouraging companies to employ more people. That way we can make sure that we won't be doing to pensioners and part-pensioners what you opposite will be doing to them if you get onto the Treasury benches. But those opposite have backflipped, but they bungled their own backflip. They can't even execute a humiliating retreat properly. (Time expired)

2:31 pm

Photo of Anne UrquhartAnne Urquhart (Tasmania, Australian Labor Party) Share this | | Hansard source

The CEO of the St Vincent de Paul Society National Council, Dr John Falzon, says:

It is unconscionable to pursue company tax cuts at the same time as slashing essential government benefits and services affecting people on the lowest incomes.

Is Dr Falzon correct?

2:32 pm

Photo of Concetta Fierravanti-WellsConcetta Fierravanti-Wells (NSW, Liberal Party, Minister for International Development and the Pacific) Share this | | Hansard source

I haven't seen what Dr Falzon said, but, as I was saying, you can't even execute a humiliating retreat properly. Last week the Leader of the Opposition said his policy, his tax grab—

Photo of Scott RyanScott Ryan (President) Share this | | Hansard source

Order, Senator Fierravanti-Wells. Senator Farrell on a point of order.

Photo of Don FarrellDon Farrell (SA, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | | Hansard source

Relevance is the point of order. It was a very simple question: we are asking the minister to comment on Dr Falzon's comments. Can the minister please direct herself to those?

Photo of Scott RyanScott Ryan (President) Share this | | Hansard source

As I've said before, ministers can be relevant to part of the question. I remind the minister of the question, as you have done, and note she has 40 seconds remaining in the answer.

Photo of Concetta Fierravanti-WellsConcetta Fierravanti-Wells (NSW, Liberal Party, Minister for International Development and the Pacific) Share this | | Hansard source

I haven't seen what Dr Falzon said, but I will take that on notice and, if the Minister for Social Services has something that he wishes to say in response to Dr Falzon's comments, I'm sure I'll be instructed to provide it to the Senate. As I was saying, last week Mr Shorten said that his policy would not hurt pensioners, but now he admits his policy will inflict a $3.3 billion tax cut, at least, on pensioners. This is chaotic policy on the run. What I'd like to do, Mr President, is take those opposite back to— (Time expired)

Opposition senators interjecting

Photo of Scott RyanScott Ryan (President) Share this | | Hansard source

Order on my left. Senator Urquhart, a final supplementary question.

2:33 pm

Photo of Anne UrquhartAnne Urquhart (Tasmania, Australian Labor Party) Share this | | Hansard source

Dr Cassandra Goldie, the Chief Executive of ACOSS, says:

Genuine tax reform would close shelters and loopholes in the tax system which high income-earners and many companies have taken advantage of for years to minimise tax.

Why is the Turnbull government prioritising a $65 billion tax cut for big business over meaningful tax reform which creates a fairer tax system?

2:34 pm

Photo of Concetta Fierravanti-WellsConcetta Fierravanti-Wells (NSW, Liberal Party, Minister for International Development and the Pacific) Share this | | Hansard source

I haven't seen Cassandra Goldie's comments, but, again, I will take that part of the question on notice and refer that matter to the Minister for Social Services. If he has any response to Dr Goldie's comments, I'm sure he will instruct me to provide them to the Senate.

Labor's election policy from 20 years ago, in 1998, when Labor was on a unity ticket with John Howard, reads:

Low income older people will be able to use their imputation credits even if they do not pay tax. This will mean that they can effectively 'cash out' the value of their imputation credits and increase their disposable incomes.

So I ask those opposite about that policy then. What was an act of compassion and fairness then, according to those opposite, is now a tax rort, a loophole and a scandal that has to be put to an end. They're the scandal, and the Australian public will not believe them. (Time expired)