Thursday, 29 November 2018
Lower Tax Bill 2018; Second Reading
That the bill be now read a second time.
I seek leave to table an explanatory memorandum relating to the bill.
I table an explanatory memorandum, and I seek leave to have the second reading speech incorporated in Hansard and to continue my remarks.
The speech read as follows—
LOWER TAX BILL 2018
SECOND READING SPEECH
Enacting this bill would nearly halve Commonwealth Government taxation. This is evidenced by a costing from the Parliamentary Budget Office, which I have attached to the explanatory memorandum to this bill.
Such a massive tax reduction is warranted because tax involves using coercion to take someone's property, and so should be kept to a minimum.
Such a large tax reduction is also responsible, provided it is coupled with an even greater reduction in Commonwealth Government spending, so that the Commonwealth Government's budget and balance sheet are repaired. I have outlined how Commonwealth Government spending should be halved in costings from the Parliamentary Budget Office, available on their website.
The Lower Tax Bill 2018 would introduce a $40,000 tax free threshold and a uniform 20 per cent personal income tax rate. Every taxpayer would pay markedly less personal income tax, and millions of current taxpayers would pay no personal income tax. The Lower Tax Bill 2018 would also abolish the Medicare Levy and reduce the Fringe Benefits Tax rate to 20 per cent.
The Lower Tax Bill 2018 would reduce the company tax rate to 20 per cent, leading to a lower cost of capital, higher investment, higher employment and higher wages. A lower company tax rate would also directly benefit Australians who invest in Australian equity, notwithstanding dividend imputation.
The Lower Tax Bill 2018 would abolish import tariffs. This would encourage Australian business to concentrate on making make products where they are first rate, rather than second rate.
Abolishing import tariffs includes abolishing ad hoc tariffs imposed in response to dumping. Dumping is the selling of products in Australia at below the price prevalent in the country of origin and should not be discouraged.
The Lower Tax Bill 2018 would abolish tobacco and alcohol taxes. Smoking primarily hurts the smoker, and when drinking generates harm, it is primarily the drinker who is hurt. It is not the role of government to prevent self-harm.
The Lower Tax Bill 2018 would abolish fuel taxes and the luxury car tax, revenues from which far exceed the costs of roads.
The Lower Tax Bill 2018 would abolish the passenger movement charge, which hurts Australia's tourism industry.
And the Lower Tax Bill 2018 would abolish the major bank levy. This imposition on the shareholders, employees and customers of major banks potentially skews lending and people's choices of who to bank with.
I commend the Bill to the Senate.