Richard Di Natale (Victoria, Australian Greens) Share this | Link to this | Hansard source

I move:

That the Senate take note of the answer given by the Minister for Finance (Senator Cormann) to a question without notice asked by Senator Di Natale today relating to the 2018-19 Budget.

It is very rare to have a budget that so starkly highlights the choices that are before us as a nation, but this is one of those budgets. This is one of those budgets that puts in very stark relief the choices that face the Australian people right now. What the government has proposed is a seven-year tax plan. Unlike Senator O'Neill, I don't mind governments laying out their long-term vision. I think that's a good thing. Of course, we need to put more value in the positions that they're putting forward that will need to be legislated and budgeted for over the forward estimates. But having an idea about where a government wants to take a nation long-term is not, in and of itself, a bad thing. The problem here is that this is a government that, through its tax package—something that it says needs to be looked at as a whole—is one that not just rewrites the tax rules of this country but remakes the very fabric of Australian society. What the government's proposing here is a radical US-style tax plan. That's what it's proposing—a tax plan that undermines the progressive nature of our tax system.

We have a progressive tax system that says the more you earn, the more you pay in tax and the higher the tax rate will be. And that tax-and-transfer system allows us to achieve a much more egalitarian nation than most. But this plan takes us down the US route. What it says is: 'We're going to have a flat rate of taxation. If you're on 40 grand, if you're a childcare worker, you'll get a tax cut'—that's true—'but you'll get the same tax cut if you're on $200,000.' What that means in practice is that, if you're a politician or a stockbroker, you get an extra $7,000 in your pocket. If you're a childcare worker or a teacher or a nurse, you get a few hundred extra dollars in your pocket. That is a recipe for turbocharging inequality in Australia. We have a problem with growing inequality here, as we do in many other developed nations across the world. The big challenge for us is how do we create a more egalitarian society? How do we create a nation where the gap between the super-rich and everybody else starts to contract? What is being proposed here is something that will turbocharge inequality in Australia. Of course, the only way that tax cuts of this magnitude—whether it be the $65 billion to $80 billion tax cuts proposed for corporate Australia or the $130 billion to $140 billion tax cuts provided for people on super high incomes—are to be achieved is by starving essential services of the funds that they need.

As a doctor, I can tell you, when someone is saying 'tax cuts', what they're also saying is: you're going to have to wait longer in the emergency department; if you're on a list to have an elective procedure, that may blow out from a year to two years; if you go and see your GP, that's a recipe for higher out-of-pocket costs; it means more to send your child to get an education; it means no chance of increasing Newstart, which is committing people to a life of poverty; it means we're going to continue to undermine our national broadband network; and it means we won't invest in a world-class public transport system. They are the costs associated with the decisions that are being made by this government. And, of course, all sides like to say, 'We care about people on low- and middle-incomes.' Well, if you are someone on a low income and you are working a few hours a week on the minimum wage, you're not going to get a benefit out of this package. If you're somebody who's on Newstart, you're not going to get a benefit out of this package. If you're a first-year childcare graduate, you won't even get a benefit out of the $40,000 tax cuts.

This is a prescription for growing inequality in Australia, and we are going to fight like hell to stop it. What should we be doing? We don't have a tax system in this country; we have a tax avoidance system. How about we close those loopholes for corporate Australia? How about we minimise profit shifting, which is where we see those big multinationals cook the books so they don't pay tax here in Australia. What about those millionaires who are not paying any tax? There are dozens of people on $2 million and $3 million who pay a lot of money to minimise their tax and then pay zero tax. Let's have a Buffett rule for those. What about those mining companies who are reaping mega profits off our coal and gas? Let's have a PRRT that actually gains some revenue. That's the prescription for a fairer, more decent Australia.

Question agreed to.