21-March-2011
Portfolio Media Releases
Topics: Carbon tax and tax summit.
E&OE
MARIUS BENSON:
Andrew Robb the government has begun filling out its plans on a carbon tax. It says there will be a carbon tax to encourage a cut in emissions, but households and pensioners will get tax cuts and welfare benefits; the prime minister talking about the tax cuts in particular being a live option.
ANDREW ROBB:
They are spraying around with all sorts of thought bubbles in a way. Nothing is confirmed only that it won’t be part of the tax summit that was announced yesterday, which seems quite extraordinary, we have one of the biggest if not the biggest tax changes in Australia’s history in terms of its long-term impact on the structure of Australia and it’s not going to be part of the tax summit.
It just beggars belief, it’s just ridiculous that we can have a tax summit and the mining tax and the carbon tax will not feature.
MARIUS BENSON:
Well the tax summit has been pushed back, it was to be held on June 30th or by June 30th and now it has been pushed back until October. Originally that was negotiated with the independents, the two independents Rob Oakeshott and Tony Windsor say they are quite happy with the delay, in fact business seems happy with the delay as well, the Australian Chamber of Commerce and Industry, often critical of the government, says no problem with an October summit.
ANDREW ROBB:
It’s not so much the timing of the summit; it’s what will be discussed at the summit. It just seems quite absurd that the government would make final decisions about what amounts to over $20 billion worth of new taxes and a lot of the detail, but not include those two taxes in a summit which is really just a matter of months away. They won’t include it in the tax summit; it just does not make any sense.
MARIUS BENSON:
Can I just ask you about the tax proposals to the extent that they have been outlined by the government. The opposition has been campaigning very hard against a new tax, against a carbon tax are you equally comfortable campaigning against tax cuts, which go with that carbon tax?
ANDREW ROBB:
Well of course we are in favour of tax cuts, up until the last election and in many respects nearly won that last election because of our opposition to great big new taxes and we are opposed to new taxes, but we are in favour of tax cuts, but not if they are funded by a bad tax based on a lie.
MARIUS BENSON:
The opposition has said unequivocally that it will abolish a carbon tax if it is elected at the next election are you also promising to abolish any tax cuts that go with that carbon tax, will you rescind them as well?
ANDREW ROBB:
What I have stated is a statement of principle that we are not supportive of tax cuts based on a bad tax, but it is at the moment hypothetical. The government at the moment is floating all sorts of propositions.
They do seem to be very much in chaos on this matter. Here was the prime minister yesterday morning discussing a carbon tax and at the same time the Treasurer of the country is announcing a tax forum via Twitter.
I mean this just seems to be a government which is all over the place. Who knows what final form any compensation will take, what we do know is that the compensation that will be given will diminish over time. Certainly it will not hit small businesses, will not hit independent retirees, it will not hit many, many taxpayers in this economy and it will be inadequate in terms of protecting our export sector.
MARIUS BENSON:
Andrew Robb, thanks again.