❓ Opposition Leader Mark McGowan questions Premier Colin Barnett's past support for the GST, given its perceived failure to deliver promised revenue to Western Australia. Barnett defends his support for the GST and criticises the opposition's understanding of tax policy.
AnsweredQoN 22Legislative Assembly
QuestionView source ↗
STATE
FINANCES — CREDIT RATING
22. Mr M. McGOWAN to the
Premier:
I have a
supplementary question. Considering the Premier raised the issue of the GST and
that he was part of the process in which Western Australia signed up to it and
at the time he said, ''Thank God for the GST'' and claimed that
it would raise additional revenue for Western Australia, does he take
responsibility for that decision?
FINANCES — CREDIT RATING
22. Mr M. McGOWAN to the
Premier:
I have a
supplementary question. Considering the Premier raised the issue of the GST and
that he was part of the process in which Western Australia signed up to it and
at the time he said, ''Thank God for the GST'' and claimed that
it would raise additional revenue for Western Australia, does he take
responsibility for that decision?
AnswerView source ↗
I certainly was and
always have been a supporter of the GST, for a number of reasons. I was neither
the Premier nor the Treasurer when that was put in place.
Mr B.S. Wyatt : Were you briefed on it?
Mr C.J. BARNETT : I make the point —
Several members
interjected.
Mr C.J. BARNETT : Members opposite keep saying to me that I
signed it; I did not. I was neither Premier nor Treasurer, but I certainly
support —
An opposition member:
You were a member of cabinet.
Mr C.J. BARNETT : Of course I was. I am not denying that; I
was the deputy Liberal leader and I support the GST for a number of reasons. If
members opposite want to understand those reasons, I will explain. We have a tax
debate in Western Australia that has gone absolutely nowhere and that is
disappointing. If we compare Australia's tax structure overall with the
first-world economies that we trade and compete with, Australia would have a
better tax structure if we were less reliant on direct taxes, particularly
income tax, and more reliant on an indirect tax such a GST. That is what was
missing in this debate. The debate should have started with the overall tax
structure and a shift towards GST-type taxes and away from income taxes. That
would be a boost for the Australian economy and ensure both our export and
import with competing industries were more competitive, but that was lost in
the debate. That is why I support the GST and I have done since its
introduction. The GST was designed to be solely devoted towards state income.
It was a piece of genius by the Howard government to give the states a reliable—it
is reliable—source of income, but it has not grown as quickly as it
could have. Part of the mistake in the debate, including by the Leader of the
Opposition's friend from South Australia, was to try to put to the
Australian people that we should increase it by 50 per cent to 15 per cent.
That was never going to be acceptable to the Australian people. A more modest
proposal may have been acceptable to the Australian people and removing perhaps
some of the —
Ms R. Saffioti : This is not lecture time, honestly.
Mr
C.J. BARNETT : Okay, I will sit down then. There she is, the accountability spokesman
in this Parliament. I was asked a question that was not a question, so I am
telling members a bit about the economics of the GST. If they would like a
follow-up tutorial, I will hand over to the Treasurer. Would members opposite
like a seminar on the GST because they do not anything about it?
Several members interjected.
Mr C.J. BARNETT : I know the Leader of the Opposition is
worried. Three federal Labor members have quit. We hear the member for
Willetton might be going federal. I would be worried if I were being stalked by
Alannah MacTiernan—I would be terrified.
always have been a supporter of the GST, for a number of reasons. I was neither
the Premier nor the Treasurer when that was put in place.
Mr B.S. Wyatt : Were you briefed on it?
Mr C.J. BARNETT : I make the point —
Several members
interjected.
Mr C.J. BARNETT : Members opposite keep saying to me that I
signed it; I did not. I was neither Premier nor Treasurer, but I certainly
support —
An opposition member:
You were a member of cabinet.
Mr C.J. BARNETT : Of course I was. I am not denying that; I
was the deputy Liberal leader and I support the GST for a number of reasons. If
members opposite want to understand those reasons, I will explain. We have a tax
debate in Western Australia that has gone absolutely nowhere and that is
disappointing. If we compare Australia's tax structure overall with the
first-world economies that we trade and compete with, Australia would have a
better tax structure if we were less reliant on direct taxes, particularly
income tax, and more reliant on an indirect tax such a GST. That is what was
missing in this debate. The debate should have started with the overall tax
structure and a shift towards GST-type taxes and away from income taxes. That
would be a boost for the Australian economy and ensure both our export and
import with competing industries were more competitive, but that was lost in
the debate. That is why I support the GST and I have done since its
introduction. The GST was designed to be solely devoted towards state income.
It was a piece of genius by the Howard government to give the states a reliable—it
is reliable—source of income, but it has not grown as quickly as it
could have. Part of the mistake in the debate, including by the Leader of the
Opposition's friend from South Australia, was to try to put to the
Australian people that we should increase it by 50 per cent to 15 per cent.
That was never going to be acceptable to the Australian people. A more modest
proposal may have been acceptable to the Australian people and removing perhaps
some of the —
Ms R. Saffioti : This is not lecture time, honestly.
Mr
C.J. BARNETT : Okay, I will sit down then. There she is, the accountability spokesman
in this Parliament. I was asked a question that was not a question, so I am
telling members a bit about the economics of the GST. If they would like a
follow-up tutorial, I will hand over to the Treasurer. Would members opposite
like a seminar on the GST because they do not anything about it?
Several members interjected.
Mr C.J. BARNETT : I know the Leader of the Opposition is
worried. Three federal Labor members have quit. We hear the member for
Willetton might be going federal. I would be worried if I were being stalked by
Alannah MacTiernan—I would be terrified.
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