Mr ADAMSON - 1996-02-21
I note that the federal Treasurer, Mr Willis, has claimed that the Australian Labor Party's promises have been analysed by the Commonwealth Finance Department. Can the Territory Treasurer give the House an analysis of Labor's credibility when it comes to talking about tax?
Mr Ede: What about funded election promises?
ANSWER
Mr Speaker, I am pleased that, by way of interjection, the Leader of the Opposition has raised the subject of election promises. As he has raised that matter, I shall be only too pleased to address one of the Prime Minister's election promises after I have made some remarks in relation to tax.
Territorians listening to the broadcast of Question Time would be aware of the promise made by the Prime Minister in the lead-up to the last election campaign. Indeed, it was 3 years ago this month when he told us that we would all receive more in the way of reduced taxes. Mr Speaker, you may remember that he said that tax cuts had been legislated. `They are not promises. They are L-A-W law'. There were to be tax cuts for all Australians. We know where that led us. It did not happen. The cuts were deferred in 1994 and have now been negated by increases in the 1995-96 budget in sales tax and company tax. It would be of interest, I think, to Territorians to learn that, in the period 11982-88, total sales tax revenue was only $3400m. In 1995-96, sales tax revenue will be more than $14 100m. Australians are worse off to the tune of $10 000m under the current Labor administration. What happened? Where did those taxes go?
We had all the hype of the campaign leading up to the 1993 election, and all the promises of sales tax reductions by the federal government, but what has happened to Australians under the regime of the Labor Party over the last 3 years? Sales taxes imposed on workers, on people in their homes, on all Australians - including those people whom the Labor Party purports to best represent and protect - have all gone up. I wonder if Territorians listening to this broadcast ever anticipated, after the Prime Minister's promises in 1993, that sales tax which was then 30% would now be 32% on articles such as radio and television receivers, tape recorders, video recorders, cameras and photographic equipment. Sales taxes have gone up on all those and other items. The schoolchildren in the public gallery today are paying more now for such items as stationery, pens, pencils, bookmarks, paperweights and other articles that they need to buy to pursue their schooling. This is from a government that supports workers and wants to improve education services to Territorians. At every turn, it has made over the last 8 years, it has made life harder for Australians ...
Members interjecting.
Mr REED: The member for Wanguri does not like to hear it. He is still defending the Prime Minister. He is still defending the fact that we did not get the L-A-W law tax cuts ...
Page 1172
Members interjecting.
Mr SPEAKER: Order!
Mr REED: Mr Speaker, in 1993, Australians were paying 15% on a new car that they had purchased at a value of $35 504. They are now paying 7% more in tax on the purchase of the same family car. That tax has increased to 22%. Cars costing over $35 000 now attract a sales tax of 45%. From 10% in 1993, sales tax increased to 12% in 1995 on flavoured milk drinks and on Australian fruit and vegetable juices, while the federal Labor government says it is supporting Australian industry and regional development. It is supposed to be helping the family. Even the health of families is worse off under the tax regime of this federal Labor government because families are paying even more sales tax than they were 3 years ago on fruit juice and milk, including milk products such as iced coffee. The member for Fannie Bay may be aware of that.
What has Warren Snowdon given Territorians over the last 3 years? He has given them no tax cuts as promised, and he has given them increased sales taxes, making every activity for the family more expensive. Is there more to come?
I come now to the point raised by the Leader of the Opposition about holes in the promises made by the Prime Minister. The big hole in the Labor Party promises is an $800m one. Why is it a hole? It is a hole because he has told the 100 people from each of whom he was to take $8m that he is coming to get them. Where does he think they are now with their $800m? That is a hole that he will not be able to fill. He promised that he would be raising $800m by pursuing tax evasion that he has been ignoring for 13 years. He used that as a pretext to fund part of his election promises. However, because he delivered the message that he was out to get them, the opportunity to raise that revenue is now lost. He will be raising more taxes.
Australians and Territorians can look forward to more tax increases if the Labor government is re-elected. The best example of that comes from the Minister for Finance. He was asked to give a commitment that there would be no increases in existing taxes if the Labor Party were re-elected in 1996. This question was asked in the federal parliament on 23 October 1996. He replied: `Why on earth would we do that?' Why on earth would he give a promise that there would be no tax increases? It was a clear indication that the Labor Party intends to raise taxes. That was further entrenched by comments made by the Treasurer, Mr Willis, on television, during the election campaign. It was further entrenched again by the fact that taxes had increased by $10m over this last period. We can look forward to a services tax under a re-elected Labor government. We can look forward to a carbon tax and an environmental levy because these taxes are being promoted strongly by the Australian Labor Party. We can look forward to a jobs levy. What sort of pressure will that put on employers? It will result in a downward spiral in employment opportunities for Territorians and all Australians. Anyone sufficiently well enough off to go overseas on their holidays will be slugged with a $10 tax on every international air fare to fund Gareth Evans' job in the United Nations.
Members interjecting.
Page 1173
Mr REED: Shame on you! If the Labor government is re-elected, Territorians will receive no protection from the likes of Warren Snowdon. All they will get is more taxes.
Page 1174
Mr Ede: What about funded election promises?
ANSWER
Mr Speaker, I am pleased that, by way of interjection, the Leader of the Opposition has raised the subject of election promises. As he has raised that matter, I shall be only too pleased to address one of the Prime Minister's election promises after I have made some remarks in relation to tax.
Territorians listening to the broadcast of Question Time would be aware of the promise made by the Prime Minister in the lead-up to the last election campaign. Indeed, it was 3 years ago this month when he told us that we would all receive more in the way of reduced taxes. Mr Speaker, you may remember that he said that tax cuts had been legislated. `They are not promises. They are L-A-W law'. There were to be tax cuts for all Australians. We know where that led us. It did not happen. The cuts were deferred in 1994 and have now been negated by increases in the 1995-96 budget in sales tax and company tax. It would be of interest, I think, to Territorians to learn that, in the period 11982-88, total sales tax revenue was only $3400m. In 1995-96, sales tax revenue will be more than $14 100m. Australians are worse off to the tune of $10 000m under the current Labor administration. What happened? Where did those taxes go?
We had all the hype of the campaign leading up to the 1993 election, and all the promises of sales tax reductions by the federal government, but what has happened to Australians under the regime of the Labor Party over the last 3 years? Sales taxes imposed on workers, on people in their homes, on all Australians - including those people whom the Labor Party purports to best represent and protect - have all gone up. I wonder if Territorians listening to this broadcast ever anticipated, after the Prime Minister's promises in 1993, that sales tax which was then 30% would now be 32% on articles such as radio and television receivers, tape recorders, video recorders, cameras and photographic equipment. Sales taxes have gone up on all those and other items. The schoolchildren in the public gallery today are paying more now for such items as stationery, pens, pencils, bookmarks, paperweights and other articles that they need to buy to pursue their schooling. This is from a government that supports workers and wants to improve education services to Territorians. At every turn, it has made over the last 8 years, it has made life harder for Australians ...
Members interjecting.
Mr REED: The member for Wanguri does not like to hear it. He is still defending the Prime Minister. He is still defending the fact that we did not get the L-A-W law tax cuts ...
Page 1172
Members interjecting.
Mr SPEAKER: Order!
Mr REED: Mr Speaker, in 1993, Australians were paying 15% on a new car that they had purchased at a value of $35 504. They are now paying 7% more in tax on the purchase of the same family car. That tax has increased to 22%. Cars costing over $35 000 now attract a sales tax of 45%. From 10% in 1993, sales tax increased to 12% in 1995 on flavoured milk drinks and on Australian fruit and vegetable juices, while the federal Labor government says it is supporting Australian industry and regional development. It is supposed to be helping the family. Even the health of families is worse off under the tax regime of this federal Labor government because families are paying even more sales tax than they were 3 years ago on fruit juice and milk, including milk products such as iced coffee. The member for Fannie Bay may be aware of that.
What has Warren Snowdon given Territorians over the last 3 years? He has given them no tax cuts as promised, and he has given them increased sales taxes, making every activity for the family more expensive. Is there more to come?
I come now to the point raised by the Leader of the Opposition about holes in the promises made by the Prime Minister. The big hole in the Labor Party promises is an $800m one. Why is it a hole? It is a hole because he has told the 100 people from each of whom he was to take $8m that he is coming to get them. Where does he think they are now with their $800m? That is a hole that he will not be able to fill. He promised that he would be raising $800m by pursuing tax evasion that he has been ignoring for 13 years. He used that as a pretext to fund part of his election promises. However, because he delivered the message that he was out to get them, the opportunity to raise that revenue is now lost. He will be raising more taxes.
Australians and Territorians can look forward to more tax increases if the Labor government is re-elected. The best example of that comes from the Minister for Finance. He was asked to give a commitment that there would be no increases in existing taxes if the Labor Party were re-elected in 1996. This question was asked in the federal parliament on 23 October 1996. He replied: `Why on earth would we do that?' Why on earth would he give a promise that there would be no tax increases? It was a clear indication that the Labor Party intends to raise taxes. That was further entrenched by comments made by the Treasurer, Mr Willis, on television, during the election campaign. It was further entrenched again by the fact that taxes had increased by $10m over this last period. We can look forward to a services tax under a re-elected Labor government. We can look forward to a carbon tax and an environmental levy because these taxes are being promoted strongly by the Australian Labor Party. We can look forward to a jobs levy. What sort of pressure will that put on employers? It will result in a downward spiral in employment opportunities for Territorians and all Australians. Anyone sufficiently well enough off to go overseas on their holidays will be slugged with a $10 tax on every international air fare to fund Gareth Evans' job in the United Nations.
Members interjecting.
Page 1173
Mr REED: Shame on you! If the Labor government is re-elected, Territorians will receive no protection from the likes of Warren Snowdon. All they will get is more taxes.
Page 1174
Last updated: 09 Aug 2016