Mr LUGG - 1998-08-20
Yesterday, the Leader of the Opposition – perhaps the Power of Six? – stated that a shopping basket containing a range of goods such as bread, milk, fruit, vegetables, tea, coffee, aspirin, cough mixture, condoms and tampons was currently free from wholesale sales tax and, therefore, that the cost of the goods would increase by the GST rate of 10% under the Coalition’s new tax package. Will the Treasurer shed a little more light on this?
ANSWER
Madam Speaker, I would like to ask the Leader of the Opposition what it is that she does not like about the truth? She appears today in a photograph in the NT News, holding a copy of the tax reform document and a calculator. However, notwithstanding that she had all the information available to her, plus a calculator to work it out, she still got it wrong!
There will not be a 10% increase in the cost of the products to which she referred. Prices will not increase by 10%. I do not deny that there will be an increase. However, the average increase, if she reads the book, in prices of food across the country will be in the order of 4.4%, not 10%. She should not misrepresent the facts by telling people that, because there will be a 10% GST, those products that are currently not taxed will go up 10%. They will not. Read the book! She was holding it. The next step is for her to open it and then to read it. If she can manage it, when she goes up to her office this afternoon, she should take it up off the desk, open it and read it. That may help her to get the right picture to present to Territorians.
She has to take into account that a range of products, which are taxed by up to 32%, will reduce in price. She has to take into account that taxes that currently add to the cost of products and that are eventually paid for by the consumer will be removed and they will become credits in relation to the manufacture of particular items. In addition, she needs to take into account that there will be major credits to the transport industry, as recognised nationally by the transport industry but still not recognised by the opposition as was demonstrated by the Leader of the Opposition’s comments earlier today. Transport costs will fall.
In overall terms, the price increase on the products that she had yesterday will be in the order of 4.4%, not 10%. She should not forget that, while that is happening, personal income tax ...
Mrs Hickey interjecting.
Mr REED: She does not even want to listen. That is how interested she is in telling Territorians the truth.
Personal income tax will fall by 14% across the scales, and Australians will have in their pockets an extra $40 to $50 a week to compensate for those increased prices. In the case of food, the increase is an average of 4.4%. I appeal to the Leader of the Opposition to have more respect for the truth and to present the facts. She should go to her office, open the book, read it, get her calculator out again, and, if she intends to talk about the tax package she should tell the truth. In speaking about the tax package, she should recognise that Australia is long overdue for tax reform. She should talk to Gareth Evans. He has been briefed by federal Treasury. I extend to her the same opportunity from the Territory Treasury. This will enable her to understand it better and to present the truth, the facts, to Territorians.
In closing, I ask Territorians to consider the package holistically, and to consider the overall benefits that will accrue to them as taxpayers and as people who contribute to the advancement of this country. If they do that, they will be much better informed than they will be by listening to the Leader of the Opposition.
ANSWER
Madam Speaker, I would like to ask the Leader of the Opposition what it is that she does not like about the truth? She appears today in a photograph in the NT News, holding a copy of the tax reform document and a calculator. However, notwithstanding that she had all the information available to her, plus a calculator to work it out, she still got it wrong!
There will not be a 10% increase in the cost of the products to which she referred. Prices will not increase by 10%. I do not deny that there will be an increase. However, the average increase, if she reads the book, in prices of food across the country will be in the order of 4.4%, not 10%. She should not misrepresent the facts by telling people that, because there will be a 10% GST, those products that are currently not taxed will go up 10%. They will not. Read the book! She was holding it. The next step is for her to open it and then to read it. If she can manage it, when she goes up to her office this afternoon, she should take it up off the desk, open it and read it. That may help her to get the right picture to present to Territorians.
She has to take into account that a range of products, which are taxed by up to 32%, will reduce in price. She has to take into account that taxes that currently add to the cost of products and that are eventually paid for by the consumer will be removed and they will become credits in relation to the manufacture of particular items. In addition, she needs to take into account that there will be major credits to the transport industry, as recognised nationally by the transport industry but still not recognised by the opposition as was demonstrated by the Leader of the Opposition’s comments earlier today. Transport costs will fall.
In overall terms, the price increase on the products that she had yesterday will be in the order of 4.4%, not 10%. She should not forget that, while that is happening, personal income tax ...
Mrs Hickey interjecting.
Mr REED: She does not even want to listen. That is how interested she is in telling Territorians the truth.
Personal income tax will fall by 14% across the scales, and Australians will have in their pockets an extra $40 to $50 a week to compensate for those increased prices. In the case of food, the increase is an average of 4.4%. I appeal to the Leader of the Opposition to have more respect for the truth and to present the facts. She should go to her office, open the book, read it, get her calculator out again, and, if she intends to talk about the tax package she should tell the truth. In speaking about the tax package, she should recognise that Australia is long overdue for tax reform. She should talk to Gareth Evans. He has been briefed by federal Treasury. I extend to her the same opportunity from the Territory Treasury. This will enable her to understand it better and to present the truth, the facts, to Territorians.
In closing, I ask Territorians to consider the package holistically, and to consider the overall benefits that will accrue to them as taxpayers and as people who contribute to the advancement of this country. If they do that, they will be much better informed than they will be by listening to the Leader of the Opposition.
Last updated: 09 Aug 2016