23-June-2005
Speeches, The Economy
Mr ROBB (2.12 pm)—My question is addressed to the Treasurer. Would the Treasurer inform the House of the changes which will be brought about by the new tax schedules operating from 1 July 2005? Have there been any impediments to these schedules coming into effect?
Mr COSTELLO—I thank the honourable member for Goldstein for his question, and I can inform the House that the income tax cuts which were announced in this year’s budget will be implemented, as promised, on 1 July and will cut tax for every Australian income tax payer. This is the last day of sitting for both the House of Representatives and the Senate. No motion of disallowance of the income tax schedules has been moved, so the Labor Party’s campaign to defeat income tax cuts has been defeated. It is regrettable, however, that the Labor Party has yet to announce its position on those schedules. The Labor Party still maintains determinedly that it is determined not to determine a position in respect of those income tax schedules. This old Senate will pass out without the Labor Party ever having actually announce a position.
There has been a lot of finger-pointing going on in the Labor Party as to whose brilliant idea it was to decide to oppose the tax cuts. Most people were saying that it was the Leader of the Opposition; although, as I keep pointing out, it was a decision endorsed by ‘Rooster Central’, led by the member for Lilley. I say to members of the House that there is good news: the Leader of the Opposition did a press conference today and confirmed that the member for Lilley will not be moved in a reshuffle. I think he has the support of this side of the House absolutely for that decision. The member for Lilley was quoted in the Australian today, and when he was asked why the tactics on tax cuts were so bad he said, ‘We didn’t bugger up the tax argument.’ That is a revelation to members on this side of the House. If the Labor Party was not against tax cuts, why did it not support them? Why did it not pass them? Why did it not announce that it would allow the schedules? Let me say again: the reality is that the Labor Party to this day believes that nobody should get a tax cut on 1 July.
Ms Plibersek interjecting—
The SPEAKER—Order! Member for Sydney.
Mr COSTELLO—The Labor Party believes that the tax cuts on 1 July should be absolutely nothing for every single Australian.
Ms Plibersek interjecting—
The SPEAKER—Order! The member for Sydney is warned.
Mr COSTELLO—That is what they announced. That is what they moved. That is what they support. That is what they are in favour of. There is one side of this House that stands for lower income taxes and that is the coalition. It always has because we believe in getting government off the backs of people and giving them incentive to work.
Ms Plibersek interjecting—
The SPEAKER—Order! The member for Sydney has been warned.