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I spoke to Alexandra Marshall of Spectator Australia on the outrageous tax that is being floated, which will impact those on smaller incomes and families.

The Environment Minister, Tania Plibersek, has warned the fashion industry to turn its back on the concept of fashion that encourages people to buy too many new clothes. This idea is straight out of Chairman Mao’s China where everyone dressed in the same uniform, reducing the need for clothing to just a few sets of clothes.

This is your future under the most radical government in Australian history, who are actively promoting the World Economic Forum’s war on clothing under the guise of ‘saving the environment’, but really they just want us to have less.

Minister Plibersek is trying to justify their levy on clothing by saying it will create a ‘Green Fund’. Based on flawed science, this tax on clothing comes just after the WEF suggested on its website that people wash their clothes less often — you will wear old clothes and be dirty. This is literally what the WEF thinks of us. It’s impossible to be “happy” about this out of control, UN agenda followed loyally by this government.

One Nation opposes any new taxes. For the Prime Minister to even consider more tax on clothing shows how out of touch he is.

Spectator Australia

Watch

Both Labor and the Coalition voted to collect billions of extra income tax dollars because they need more money. Yet foreign multinational corporations in Australia are paying little or no company tax.

Bracket creep is a secret tax that means government makes money out of inflation. The government is not indexing the tax brackets to fix bracket creep meaning Australians will collectively pay $38 billion extra in tax over the next four years.

I moved an amendment that would eliminate bracket creep by indexing the tax thresholds. This means the inflation rates would be adjusted for inflation so Australian’s pay the same rate of tax instead of continuing to pay more which is the current situation the government is failing to address.

Instead of giving tens of billions of dollars back to Australians, both Liberal and Labor are happy to keep secretly collecting more and more tax, and by their own admission, they’ll only ever give it back when they can afford to. When can we expect that to occur, considering the current government’s focus is on funding UN climate goals and inflationary COVID debts?

Transcript

Senator ROBERTS: Minister, do you agree bracket creep is a problem for taxpayers in Australia? 

Senator GALLAGHER: I think all governments recognise bracket creep is an issue. That’s why governments of both major parties return bracket creep when it’s affordable and sustainable to do so. You’ll notice that, in the reforms to the tax proposal that was outlined by the former government, this does that by lowering the two thresholds and dropping the two tax rates; sorry, I’m getting back into tax land! That’s how we’re dealing with bracket creep. It provides relief, and 84 per cent of taxpayers will be getting a bigger income tax cut than they would have under the former government and paying less tax. By 2034-35, someone earning an average income will pay $21,635 less tax than they otherwise would have without these tax cuts. 

Senator ROBERTS: Minister, you said you return bracket creep when it suits you and when you can afford it. Doesn’t that mean that you’re taking money off taxpayers, and that it’s really a stealth tax because taxpayers don’t know they’re moving into a higher tax bracket? Bracket creep is when the brackets stay the same but people’s wages inflate and they move into a higher tax bracket—so they automatically pay a far higher rate of tax in the next bracket and they don’t even know it. Isn’t that tax by stealth? 

Senator GALLAGHER: No, I don’t agree with that. I think Australians understand marginal tax rates and the interaction between their earnings and those tax rates. I would say again that’s why, regularly, tax cuts are provided to taxpayers—to deal with bracket creep and provide other assistance where that’s possible, where it’s affordable and sustainable to do so. I say that not to say ‘when we choose to’ or ‘when we feel like it’ but because we have to manage a budget responsibly as well. People expect that because taxes pay for all the services that people consume and expect to receive from their government. 

Senator ROBERTS: Minister, I remind you, before asking my next question, that former deputy commissioner of taxation Jim Killaly, who was in charge of large companies and also international matters for the Australian Taxation Office, said back in 1996 and 2010 that 90 per cent of Australia’s large companies are foreign owned and have paid little or no tax since 1953, due to Liberal legislation that was passed in 1953 letting major foreign owned corporations off the hook. Bob Hawke made sure that the Labor Party was also giving gifts to major foreign corporations by letting the world’s largest avoider of tax, Chevron, off the hook for tax in the North West Shelf. Surely the fix to bracket creep is to index brackets. If we’d done that 10 years ago we would have saved the people $44 billion in tax. You say, ‘Where can we get the tax from?’ I get that tax is the cost of government, that tax is the price of government and that tax has to be paid, but foreign corporations in this country are paying little or no company tax. That means they’re using our services that every mum and dad and family and small business is paying for in this country, and they’re doing it for free. We used to be the world’s largest exporters of gas, we get very little for it, and these foreign companies are sending it overseas. Japan gets $3 billion a year off import duty for our gas going into their country, and we get very little for it. So what I say to you is that we can’t afford it because you’re not taxing foreign multinationals adequately. You’re letting them off the hook. Because you didn’t index brackets in this attempt, over the next four years Australians will pay $38 billion more tax than if you indexed brackets. Surely, you can look at the spending and cut some of that back. Surely, you can look at the taxation of foreign multinationals and make sure they start paying their fair share. Then let Australian families off the bracket-creep hook. Why can’t you do that proper budget for the Australians? 

Senator GALLAGHER: There was a lot in that, Senator Roberts. I think your final question was around budget management, and the work we have done in the last or two budgets and MYEFO has been to repair the budget. The deficits are a lot less, going forward. We’ve had a surplus budget, we’ve lowered our debt, we’ve contained spending despite the pressures the budget is under, and where we’ve had revenue windfalls we have returned the vast majority of it— over 80 per cent, 88 per cent I think—to the budget to repair it. We do have to manage the budget responsibly and we’ve been able to do that and provide bigger tax cuts to more Australians. On your point about multinational tax reform, I don’t necessarily agree with all of it because I haven’t been able to verify some of the things you’ve said. We agree that we should be making multinationals pay their fair share of tax—we’ve got a bill before the parliament on that, we’ve got a bill on PRRT and we’ve got a bill on high-balance super, and that is about making sure we are putting the budget on a sustainable footing, that we’re able to pay for defence, aged care, hospitals, the interest on our debt and the NDIS, and that we are able to pay for those services that people expect. But this plan does deal with bracket creep, so I don’t accept the position that you put saying we don’t. That’s part of the reason why we’re doing it. The Treasury advice there is very clear. Our plan provides better protection against bracket creep for 70 per cent of all taxpayers over the decade, including the average taxpayer and those on low and middle incomes. 

Senator ROBERTS: Minister, how can you say it fixes bracket creep when over the next four years Australians—families and individuals—will be paying an extra $38 billion due to bracket creep? You are not indexing the brackets themselves; you’re just making a one-off adjustment. As soon as that happens, with inflation continuing, you will continue to increase revenues. Inflation hits families in two ways: first of all, goods and services cost more; second of all, they move into a higher tax bracket and they pay more tax. They actually end up with less take-home pay. So I don’t buy your argument. Why doesn’t Labor want to fix bracket creep? 

Senator GALLAGHER: I think we’re just agreeing to disagree, Senator Roberts. This plan does deal with bracket creep by reducing two tax rates and increasing two tax thresholds. It does deal with bracket creep. In particular, as I said in my previous answer, for average taxpayers—those on the average wage, and low- and middle-income earners—this substantially improves the money they get back in their pockets, and returns that bracket creep. But you disagree with me—I will keep making that point and, presumably, you will keep making yours. 

Senator ROBERTS: Minister, you cannot argue with the fact that someone who is just below the next tax threshold will soon be paying higher tax because of inflation. That is a fact. The only way to beat that is to index the tax thresholds. As to supporting my amendment, it shows you do not want to stop rampant increases in tax or you want to keep bracket creep to exploit taxpayers. Why don’t you want to fix bracket creep properly by indexing it so that brackets rise as inflation rises and wages rise, so people stay within the same bracket and there is no creep? Why don’t you want to fix bracket creep? 

Senator GALLAGHER: The tax rates haven’t been indexed, that’s right. I understand your amendment seeks to do that. I don’t think you’ve moved your amendment, but I may as well cover off. We are not supporting your amendment. The approach in this bill is preferable to your amendment because it provides governments—I’m talking about not our government but all governments; this is the way it’s been done—with greater flexibility to respond to fluctuations in the economic cycle. This proposal does deal with bracket creep. It does return money to taxpayers. I don’t know where you get your $38 billion figure from over the forward estimates, but I think your point there is that there will be—that’s assuming, wherever that number comes from, that there will be no change to tax rates in that. History will show that governments have made decisions to implement tax cuts where it’s affordable and sustainable to do so on the budget, and I expect governments of both political persuasions will continue to take that approach. 

Senator ROBERTS: Minister, in my view, I don’t think you’re being honest with the people of Australia, because bracket creep is a stealth tax. Inflation helps your tax revenue. How many pages are in our tax act? 

Senator GALLAGHER: We might have to take that on notice. I’m just seeing if we can provide you with an accurate answer, but it’s quite detailed and there are obviously pages that underpin the tax act as well. I’m not sure we’ll be able to do that accurately tonight, but we’ll see what we can do. 

Senator Scarr: To the nearest ten thousand! 

Senator GALLAGHER: I was going to say: it’s a lot! 

Senator ROBERTS: To the nearest thousand would be fine, thanks, Minister. The point I’m trying to make is that we already have a very complex tax system, which is confusing for small businesses and confusing for people who don’t have access to lawyers and deep pockets. It’s confusing for individuals and families. We always support returning more money to taxpayers, and $15 a week is a lot of money to many people. In the overall scheme of things, it’s not very much. In a few years, you’ll be recovering far more. Is there any plan to actually reform taxation properly, to do a comprehensive reform so that the tax system becomes simple, clear, effective, efficient, fair and honest? Is there any stomach within the Labor Party to be honest with the people of Australia and really reform taxation comprehensively? 

Senator GALLAGHER: I think the government’s been clear about what our tax changes are. They are the Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024, the bills I referred to before on high-balance super accounts, multinational tax reform, PRRT—they are the government’s tax plans. Am I missing one? 

Senator Hume: Negative gearing! 

Senator GALLAGHER: I don’t accept that interjection. That is the government’s tax agenda going forward. 

Senator ROBERTS: I move Pauline Hanson’s One Nation amendment (1) on sheet 2342. 

Senator HUME: For the benefit of the chamber, I just want to inform you that the opposition is going to oppose this amendment, Senator Roberts. We won’t be supporting it, because the stage 3 tax cuts were originally designed to address bracket creep but do it in a very structural, costed and fiscally responsible way. While this measure would address bracket creep, you’re absolutely right that the fiscal cost of this change isn’t known, and that’s why we couldn’t support it at this stage. The Prime Minister’s broken promise means that delivering the stage 3 tax reforms as they had been legislated originally is now impossible, but the coalition remains committed to fighting bracket creep and to enshrining aspiration, because strong leaders keep their promises, even when it’s hard to do so. 

Senator GALLAGHER: I made some comments previously, but we will also be opposing this amendment. The bill before the chamber does deal with bracket creep. It delivers tax cuts for 13.6 million Australians. It’s carefully calibrated to provide more cost-of-living relief. I know that Senator Roberts said that it was $15. I think that figure he is using is the extra that people will get. Those people will get $15 extra on top of the tax cuts they otherwise would have got, and, for many people, that is a substantial amount of money. We recognise there are other things to do on the cost of living. That’s why our other measures are being put in place. But in terms of your amendment, we oppose it. We think the way we’re approaching it in this bill is preferable, and it’s the way it has been done in the past. It gives government the flexibility to make those decisions when it’s affordable to return bracket creep in a way that can maximise those returns. 

Senator ROBERTS: Minister, I want to take you back briefly to a previous answer you gave when you implied the surplus—which is correct in the budget. The surplus has only been around for two years because of the strength of our agricultural production and our coal and iron ore exports. That’s the only reason. What we’re seeing is a country that is at the mercy of international prices for its major primary products. If something happens, then we have to rely upon bracket creep to pull us out of the mess, and that’s not fair to Australian families and individuals. 

Senator GALLAGHER: I accept that our export industry and our resources certainly contribute to our tax revenue through company tax receipts and others, but the strength of the revenue upgrades has also been improved and strengthened by the strength of our labour market. We’ve had many more people in jobs earning money and therefore paying tax than we have previously. Unemployment is at a record low; participation is at a record high. It’s kicking up a bit now, but that has contributed significantly to the improved position of the budget. Yes, we acknowledge that. Part of that has allowed us to pay debt down so that we’re not paying as much into the future and generations of the future are not paying those interest costs—the fastest-growing cost on the budget is managing the interest costs on our debt— and it’s allowing us to deal with all of those areas of pressure that we talk about all the time in here: the NDIS, aged care, hospitals and defence. They are all big costs coming at the budget, and we do have to manage it in a responsible way. 

Senator ROBERTS: I’m not pretending to say it’s easy. It’s complex, but it’s excessively complex. You’re addressing the need for increasing tax revenues for the extra expenditure, including interest payments, but what you’re not saying is that a lot of that money is coming from individuals through immigration, which is putting enormous pressure on house prices and inflation. That’s a real impediment to people looking for houses right now. We’ve got people in Queensland sleeping in tents in showgrounds in Gladstone, in parks in Bundaberg, in parks and on the banks of the river in Brisbane and in Ipswich, Logan and Townsville. I think we’re making a rod for our own back. When are we going to see comprehensive tax reform to take the load off individuals and put it onto large corporations so they start paying their fair share? 

Senator GALLAGHER: Well, I’ve outlined that we do have a bill around multinational tax reform to ensure that those big multinational companies are paying their fair share of tax. I think if you talk to many domestic companies they’ll say they’re paying their fair share of tax right now. People have a view about that, I guess. Individuals do contribute substantially to the Commonwealth budget through income tax. We need to generate revenue in order to pay for services. On your point around population and housing, obviously you can’t do everything through tax cuts, and that’s why all those initiatives we’ve got in housing are so important and why we want the chamber to support the latest part of our housing initiatives, which is Build to Rent. We’ve got a full suite of programs. We acknowledge that supply is the problem, and the Commonwealth is right in there with our sleeves rolled up, working with states and territories, to do whatever we can to generate more supply. Also, as you know, some of the changes we’ve made to the migration system have ensured that those net overseas migration numbers that we’ve seen rise post-COVID are coming back down to our more traditional rates. 

Soaring cost of living, massive mortgage, rent hikes and inflation meant Australian households suffering the fastest income collapse in the world last year. Labor’s tax changes will benefit some Australians, a measly $15 a week to make up for this.

Labor are out of touch.

This legislation will barely make a dent in cost of living and the government admits as much by claiming these tax cuts will make no measurable difference to the amount of money Australians have in their pocket to spend. Meanwhile, they are silent on their secret money maker – bracket creep. As wages increase, Australians move into higher tax brackets while only being able to buy the same things due to inflation, yet they’ll be paying more tax. This little trick means government has collected an extra $44 billion in taxes from Australians, thanks to inflation over the last decade. Because it hasn’t been fixed, Australians will be paying an extra $38 billion in the next four years alone.

I moved an Amendment that would change the tax rates to keep up with inflation and eliminate bracket creep. If Liberal and Labor are genuine about real tax cuts, they’ll vote for this Amendment and let Australians keep billions of dollars.

One Nation has been talking about the Liberal-Labor government’s secret tax loophole of bracket creep ever since this debate on the Stage 3 Tax Cuts started and we are doing something about it with our proposed amendment to this bill. We need proper tax reform urgently.

Transcript

I rise to speak to the Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024. Like most of the words Australians hear out of Liberal and Labor mouths, the title of this bill is a false promise. It’s a lie. It’s almost a sick joke from the Labor government to even put the words ‘cost of living’ in this bill. Let’s talk about the cost of living. Compared to what was already legislated, these tax changes are $15 a week different for the average Australian. For many that’s significant because of Labor’s huge cost-of-living increases. In four years, Australians have been slapped with some of the worst declines in economic circumstances in decades internationally. Australian households suffered the fastest income collapse in the world last financial year, under Labor. Inflation has sent Australian wages—real wages—back to a point not seen since 2009. That means that Australian wages have gone nowhere in real terms for 15 years. The average mortgage has gone up $1,210 a month—a month! Australia’s average rent has hit a record $601 a week, up from the August 2022 median of $437 an astounding 37 per cent. Fifty dollars doesn’t get you far at the supermarket anymore. Petrol is now considered a bargain at $1.80. How far we’ve fallen! 

As billions in government coupons and rebates expire, power bills will rise even further. Despite Labor’s promises to cut electricity bills by $275, Australians have never paid more to keep the lights on. We’ve never paid more. We have the highest electricity prices in the world. We used to have the lowest—until Labor and the Greens and teals came along. 

What is the government’s solution to these skyrocketing costs of living? To fix your problems with groceries, your mortgage or rent, power bills and more, the Albanese government is going to give some Australians—some Australians—$15 a week and expect you to bow down and thank them for it. 

Like the governments before it, this Labor government is all spin and no substance. In fact, it’s all theft. They will put a fluffy title on a bill, like they have here: ‘cost of living tax cuts’. Oh, really! In reality, this won’t make a dent in the cost of living most Australians are suffering through. The costs Labor is imposing are far, far higher than the minor changes they’ve made. This bill is a perfect example of how out of touch this Albanese Labor government really is. Their priorities are in the wrong place. They’re more interested in looking good than actually doing good. 

In his speech about this bill, Treasurer Jim Chalmers just couldn’t help himself. He needed to invoke identity politics and explain that these tax cuts were so much better for women. I checked the Taxation Office website, just to make sure nothing had changed, and it hadn’t. Someone might want to let Treasurer Chalmers knows that Australia doesn’t charge different tax rates based on what’s between our legs. There’s no table that says, ‘If you earn $60,000, as a man you’ll pay, say, 32.5c per dollar, and, if you’re a woman, you’ll pay 35 cents.’ That’s probably lucky, because Labor can’t even answer the question: ‘What is a woman?’ If the Treasurer can’t make a speech about tax without invoking gender political correctness, you have to wonder what hope they’ve got. What hope have we got? Here’s a tip for Labor: regardless of what Australians have between our legs, life is tough right now; the economy sucks; and $15 a week will barely make a dent in the extra costs you have imposed in just 18 months. 

Now, I’ll never oppose Australians getting a tax cut. Yet calling these tax changes ‘cost-of-living relief’ is like claiming you’ve fixed a raging bushfire after throwing cup of water on it. 

These tax changes won’t do anything while government policies make Australia’s cost of living even worse—far, far worse. There’s energy. They’re killing agriculture. There’s immigration. They’re hiding per capita recessions. There are house prices and rents. The government response to COVID created the inflation problem that has wrecked Australian households. And Labor was all the way with Prime Minister Morrison. 

The government’s net zero policies are increasing power prices, making it harder for households to keep the lights on and businesses to keep their doors open. That’s a fact. Only this week, the government is discussing putting an extra four per cent tax on clothes, to comply with United Nations/World Economic Forum policies—four per cent on clothes, in addition to the 10 per cent GST on clothes. The government will be putting an emissions tax on vehicles, forcing Australians’ favourite utes off the road and making any other cars far more expensive. That’s from a Labor government. All of the pressures facing Australian households are a result of government policies, and Labor’s response is a measly $15 a week. 

The Liberals do not get a free pass on this. The only reason we’re in this situation is because of the Liberal Party’s gutlessness in parliament. Many will notice that the original tax changes were called ‘the third stage’. All three stages were announced by the Liberal coalition government in 2018. Why, then, was stage 3 left until 1 July 2024 to come into effect? I’ll tell you why: the truth is the Liberals wanted to leave stage 3 as a trap for Labor, who have always been opposed to them. If the Liberals were genuine about stage 3, why didn’t the changes come into effect five years ago? That didn’t happen because the Liberals wanted to play cynical political games and trap Labor. Neither Liberal nor Labor are interested in genuine tax reform; they’d rather play games with it to get a headline—play games with people’s livelihoods, lives and futures. 

The crown of destroying Australia sits on the heads of both the Labor party and the Liberal party. They both have gutless policy on everything in our country, especially tax. They run away from the real issues facing Australians. The Treasurer and the government claim that these tax changes won’t add to inflation—that’s shooting themselves in the foot. If that’s true then the government is admitting these changes won’t do anything. They’re saying it won’t make enough of a difference to the amount of money Australians will have to spend to even be measured. Maybe the government is lying, and these changes will make inflation worse. That would be embarrassing to admit, given Treasurer Chalmers says our No. 1 priority should be ‘to finish the fight against inflation’. Labor appears to have put themselves between a rock and a hard place, a situation all of their own making. Australians have got used to this Labor government speaking out of both sides of their mouth—this tax bill is no different. 

Now, I’ll never oppose tax cuts for Australians. These tax changes, however, are just fiddling around the edges. Instead, we need real tax reform. Real reform is in the amendment I have proposed on sheet 2342. This would index the income tax thresholds to inflation and eliminate bracket creep. This is genuine tax reform. Bracket creep is the government’s dirty little secret. Inflation means Labor will quietly pocket tens of billions of dollars in extra taxes by simply doing nothing. As wages increase with inflation, they go into higher tax brackets, you’re paying higher tax rates and no one says a thing. We are going to say something. We’ve been saying something about this ever since this debate started, and we will fix it by putting an amendment in there. 

It’s a stealth tax. As wages increase, Australians move into higher tax brackets, while being able to buy only the same things due to inflation, yet they’ll be paying more tax, so they’ll have less money to spend on groceries effectively and less money to spend on disposable income. Bracket creep amounts to a secret tax that the government are keep collecting to pay for their pet projects of questionable benefit. If the Liberals and Labor want to increase taxes, they should put in a bill or take it to an election and be honest with Australians, rather than quietly rely on bracket creep to secretly plug their budget holes and ratchet up income tax receipts. 

Bracket creep should’ve been fixed a decade ago. Analysis from the Parliamentary Budget Office shows that Australians have had to pay an extra $44 billion over the last decade because of bracket creep. Shh, don’t tell them! Because we didn’t take that action and fix this 10 years ago, over just the next four years bracket creep will mean Australians will pay more than $38 billion extra in taxes. You thought you were getting a tax cut. If the government gets inflation under control, fixing bracket creep won’t cost the budget anything. Australians don’t deserve to pay for inflation twice because of government mistakes, and the budget shouldn’t benefit from out-of-control inflation. Here’s how you’re paying twice: firstly, inflation because of an out-of-control government—higher prices; secondly, the higher wages that come with inflation put you into a higher tax bracket—bracket creep, higher taxes. You have less real money overall. Now, I note that the Liberals have made many comments about the scourge of bracket creep. This is your opportunity to fix it once and for all, and I urge all senators to stop the taxation increases-by-stealth and index the tax thresholds—the brackets. 

If Labor need any suggestions on areas of spending to fix it so they don’t have to keep secretly stealing more money from Australians, they can consult One Nation’s extensive work at Senate estimates for a few tips. There are lots of tips in there. We exposed so much: the flawed $65 billion Hunter frigate program they fiddled with and didn’t cancel; the NDIS being on track to cost $100 billion every year; and up to $8 billion a year in Medicare fraud. They are all some good places to start. 

We support this bill. It’s being dishonestly represented by Labor as a tax cut; it’s a tax fiddle. We can change that by passing my amendment to remove bracket creep. As a servant to the people of Queensland and Australia, I recommend that, instead of fiddling with the tax system, we fix the tax system. Reform the tax system for the benefit of all Australians, all families, our economy and our grandchildren’s economic future and security. 

I will just make some comments about tax reform, in connection with this bill. The tax system is complex, wastes enormous resources and is destroying economic productivity. Tax is essentially necessary because it’s a cost of government. It has become the cost of unaccountable waste over government needlessly micromanaging and controlling people’s lives and destroying economic initiative, hope and security. That’s what our tax system has become. It’s necessary as a cost of government, but it has now gone overboard. The tax act is immense—thousands of pages, a feast for lawyers and accountants. 

In a highly competitive international market, our resources are being wasted. Instead of our best and brightest accountants helping us to be more competitive in facing our international competitors, companies in Korea, Japan, China, America, Indonesia and Asia—instead of facing them and being more competitive by putting our best people to work, we’ve tied them up in the tax system trying to dodge tax because it’s so damn complex and so inefficient. Jim Killaly, the deputy commissioner who was responsible for international matters and large companies, who was second in charge at the Australian Taxation Office and in charge of large companies and international matters, said twice, in 1996 and 2010, that 90 per cent of Australia’s large companies are foreign owned and, since 1953, have paid little or no company tax due to the Liberals introducing legislation exempting foreign companies back in 1953. 

The tax act enables companies to use tax tricks such as transfer pricing to eliminate book profits and tax being paid in Australia and take it all overseas. In 1987 the Hawke Labor government introduced a petroleum rent resource tax that effectively exempted the world’s largest tax evader, Chevron, from paying tax. They steal our gas and export it to other countries, and we don’t get much for it at all. The Liberal-Labor party, the uni-party, are working for their global corporate masters. Exempting corporations from paying their fair share of tax means the burden falls on us, the people. To the people in the gallery: you’re paying for these uni-party rorts. 

Aussies are paying far too much tax already. Former Treasurer Joe Hockey said that typical Aussies work from January to June paying tax. Half of the year paying tax, effectively a 50 per cent tax rate—that’s what Joe Hockey said. And then we get to keep the rest from July to December. Industry figures calculate that almost 50 per cent of the price of a house is tax, meaning an effective tax rate of 100 per cent. Brisbane accountant Derek Smith said that 50 per cent of the price of a loaf of bread is tax, meaning the effective tax rate is 100 per cent. Seventy per cent of the price of fuel is tax—or it used to be; the price has gone up even higher now. Essentially, workers have to pay double and they’re getting ripped off. They pay income tax, and, with what’s left, they pay taxes on everything they buy. We need tax reform urgently. 

The Federal opposition has been urged to follow through on calls for real tax reform to stop bracket creep and vote for a One Nation amendment to Labor’s Stage 3 tax changes.

Senator Malcolm Roberts’ amendment would index all tax thresholds to adjust for inflation, saving Australians billions of dollars in extra taxes over the coming years.

Senator Roberts said: ‘It’s time to stop fiddling around the edges and implement genuine tax reform.

‘Bracket creep is the government’s dirty little secret. Inflation means Labor will quietly pocket tens of billions of dollars in extra taxes by doing nothing.

‘As wages increase, Australians move into higher tax brackets while only being able to buy the same things due to inflation yet will be paying more tax.

‘Bracket creep amounts to a secret tax that government is happy to keep collecting to pay for their pet projects of questionable benefit.

‘If Liberal and Labor want to increase taxes, they should put it in a Bill or take it to an election and be honest with Australians rather than quietly relying on bracket creep to secretly plug their budget holes.

‘If the Government gets inflation under control, fixing bracket creep won’t cost the budget anything.

‘Australians don’t deserve to pay for inflation twice because of government mistakes and the budget shouldn’t actually benefit from out of control inflation.

‘If Labor needs any suggestions on areas of spending to fix so they don’t have to keep secretly stealing more money from Australians they can consult One Nation’s extensive work at Senate Estimates for some tips.

‘The flawed $65 billion Hunter Frigate program, the NDIS on track to cost $100 billion a year and up to $8 billion a year in Medicare fraud are all some good places to start.’

Anthony Albanese has lied to the Australian people — it’s important to point that out.

The conversation around Stage 3 tax cuts is a smoke screen that only fiddles around the edges.

Since 2020, the rate of taxes Australians are paying has gone up by 20%. Anthony Albanese will only give Australians $20 a week back.

Here’s a thought PM – if you’re genuine about Australians paying lower taxes, why don’t you index the thresholds so Australians don’t pay more tax just because of inflation?

I spoke on the Treasury Laws Amendment (2023 Measures No. 1) Bill 2023. One Nation supports an efficient, honest and fair tax system. This Bill does nothing to make that happen.

Trickery with franking credits (again), the start of mandating Blackrock and Vanguard style ESG into Australia’s financial system and a potential Robodebt 2.0 are all in this Bill.

Despite Labor’s promises, they continue to fiddle with the taxation system and it is rarely for the better.

Transcript

As a servant to the people of Queensland and Australia, I speak on the Treasury Laws Amendment (2023 Measures No. 1) Bill 2023. One Nation supports an efficient, honest and fair tax system. An important aspect of a fair system to is to make sure tax is not double-charged. That’s what franking credits do. They make sure a tax is not double-charged. They ensure that Australians don’t pay income tax on the parts of dividends on which the government has already collected company tax. That’s fair. There’s no reason to allow the government to double-dip on Australian profits and then again on Australians’ income.  

In the 2019 election campaign, Labor proposed changes to the franking credits system. Australia completely rejected those thought bubbles. Labor learnt from that lesson and for the 2022 election, promised there would be no changes made to franked dividends if Australia voted them into government. Yet, now that Labor is in government, schedules 4 and 5 make a number of wholesale changes to how the dividend, share buyback, and franking system currently works. It is a broken promise, yet another to add to Labor’s list of broken promises. Just like when they promised to reduce your power bills by $275, Labor’s promise that they wouldn’t touch franking credits was a lie. As always, the government claims that these are simply modest changes. They’re anything but modest, with large implications for companies and for capital markets. The government hasn’t been able to articulate the need for these changes, nor quantify how big an impact they will have. They’re doing it, and they don’t even know what will happen. We cannot legislate on a hope, a vibe or a wish that it will be okay. While that is, according to some in government, Prime Minister Albanese’s modus operandi, it’s not a responsible way to steer a $1.7 trillion economy. It’s highly irresponsible. One Nation will be opposing these changes in schedules 4 and 5 and cannot pass the bill if they remain part of this package.  

Schedule 2 lays the groundwork for standards that align money to climate goals. This would presumably be to create alignment with the greatest scam in finance: ESG standards—environment, social and governance. The powers that be call them ‘sustainability standards’, yet there’s nothing sustainable about them. In fact, UN sustainability policies survive only as parasites on subsidies from the real economy—subsidies: that makes them unsustainable. So-called sustainability standards talk about protecting the financial system from risks. Yet they cannot quantify what those risks are. The idea that the government or, worse, a single bureaucratic department can ever predict and quantify risk to the financial system is sheer lunacy. A brief analysis of history shows that. Did the government and regulatory agencies see the risk of the dot com bubble coming in the 2000s? No. They had no idea. Did the American regulators see the risk of subprime mortgages leading to the global financial crisis? No. They arguably participated in and make it far worse. Did any regulator around the world predict the risk of almost every government in the world going certifiably insane in response to COVID, a bad flu? No, they did not. Over the last three years, the Reserve Bank created $500 billion in electronic journal entries, money concocted out of thin air. Did any regulator predict the risks that would lead to the skyrocketing inflation that we’re still trying to get under control? No, they did not. Actually, some did, and we were ridiculed by the experts. The point here is very simple. The government and the regulators cannot quantify the risk of financial system shock. History shows governments are hilariously bad at it. They certainly won’t be able to do it for supposed climate risks that are nothing more than fabrications concocted from inherent, natural, cyclical variation. By the way, everything in nature—everything in existence—varies, yet understanding of variation is not taught in schools and rarely taught properly, if at all, at university. That’s why Green, Labor, Teal and, sadly, some Liberal-National members and senators spout nonsense in this parliament and in public, concocting and spreading imaginary fears of climate apocalypse, when reality shows simply inherent, natural, cyclical variation. 

They cannot even come up with the only sound and essential basis for policy—that is, they’ve never quantified the specific effect of carbon dioxide from human activity. That means they have no basis for climate and energy policy, no specific quantified goals for climate and energy policy and no means of measuring progress towards those goals. We’re flying blind. Australia is flying blind. Energy costs and climate policies are out of control and needlessly imposing huge costs on families, small businesses, our country and our nation’s future. Anyway, the only thing we can do to protect against systemic risks is to make sure that financial intermediaries are well capitalised and diversified to survive any risk that comes to fruition. Doing anything else encourages a lack of diversification and actually increases risk. 

I don’t believe in this climate apocalypse nonsense, this climate fraud, yet even for those who do fall for this illusion there’s no serious risk to anything. Let’s look at the supposed science around climate risk. When I ask the government why we need to cut human production of carbon dioxide, they point me to the United Nations Intergovernmental Panel on Climate Change, the UN IPCC. They’re a dodgy bunch—proven over 40-plus years—yet I don’t think anyone in here has actually read the IPCC reports they claim as proof the climate is going to collapse. If you go to the IPCC’s assessment report 6, you’ll see chapter 12 is the summary of Working Group I, who looked at the actual science around natural disasters. Table 12.12 summarises all of the available evidence on the frequency of extreme weather events. Let me read out the types of natural disasters where even the United Nations has said there has been no detectable increase in the number of natural disasters. I repeat that: no detectable increase in frost, river flood, rain measured in terms of mean precipitation or heavy precipitation, landslide, drought, fire weather, wind speed, windstorm, tropical cyclone, dust storm, heavy snowfall, hail, relative sea level, coastal flood, marine heatwave—and on and on. Although I do not put any trust in the United Nations, government claims it does, and the United Nations says there has been no increase in severe weather events in those categories—none. 

Even better, table 12.12 in the IPCC’s AR6 says the United Nations doesn’t expect to see any detectable increase in those categories in the next 80 years under its worst-case scenario. There’s no risk to the financial system from climate change because there’s no need to cut human production of carbon dioxide—end of story. 

As an aside, I ask: on what basis does Minister Watt get his frequent fanciful, scary claims of increasing extreme weather events? Wild imagination, Senator Watt? From where do the Greens get their dishonest claims? From where does Senator Pocock get his pseudoscience to support his Kermit green fantasy policies? Is it the family money of Simon Holmes a Court, who now relies on the millions of green subsidy dollars that support otherwise unsustainable and failing wind and solar net zero projects—parasitic subsidies from energy users and taxpayers who pay through needlessly higher prices. 

Recently in this chamber I heard Senator David Pocock cite scientists who said they have fears for the climate. Significantly, he did not provide any science to back it up, apparently because he seems to just swallow their words because they claim to be scientists. That’s what’s happened repeatedly in this chamber. People don’t produce the science; they say what scientists conclude and don’t analyse it. Those scientists are on major grants to push the climate fraud. Real scientists don’t peddle unsubstantiated fears. Scientists present science, presenting the empirical scientific data as evidence within logical scientific points, proving cause and effect. Never has anyone done that. Senator David Pocock never presents any such science nor references the specific pages providing such logical scientific points—never. Extreme weather has always been with us. It remains with us and will always be with us. It’s natural and often cyclical.  

So what’s the real reason for implementing so-called sustainability standards and ESG? The Assistant Treasurer, Stephen Jones, said it in his second reading speech to this bill: the purpose is to ‘align capital flows towards climate and sustainability goals’. I’ll say it again: the purpose is to ‘align capital flows towards climate and sustainability goals’—political goals, not scientific. Those are the goals of predatory globalist billionaires and the rent seekers who are flogging wind, solar and battery products, billionaires peddling parasitic mis-investments in solar, wind and batteries and transferring wealth from families, small businesses and employers to billionaires, often overseas. 

Despite claims that these solar and wind products are the cheapest, the free market has utterly failed to adopt them, because they simply cannot survive in the wild on their own, without subsidies. In other speeches in recent weeks, I’ve documented the huge number of failures in wind and solar projects overseas and here in Australia. They’re falling over like flies. Billionaires behind the climate push are panicking now that their parasitic investments won’t get the return they need. The teals’ sugar daddy, Simon Holmes a Court; Andrew ‘Twiggy’ Forrest; Johnny-come-lately to climate fearmongering Mike Cannon-Brookes; and old stagers Alex Turnbull and Ross Garnaut—having failed with climate scams in the free market, these climate doomsayers now need the government to direct money their way through implementation of ‘climate standards’—they’re going to standardise the climate!—to, as the Assistant Treasurer said, ‘align capital flows’. This is more of the crony capitalism that has ruined Australia. If it weren’t so serious, it would be laughable. This is why I’ve circulated an amendment to strike out schedule 2 of the bill. There’s no reason to even start down this path of folly and pretend that, hidden away in the cupboard somewhere, the government have a crystal ball they can use to predict the future. If they do, they clearly haven’t used it before. 

A final concern I’ll raise is with schedule 1, part 2, of the bill. This gives ASIC the power to use ‘assisted decision-making’ processes. That’s their label. This amendment is incredibly broad and vague, and we can assume this will involve some level of automation and, eventually, the implementation of AI, artificial intelligence. It’s incredibly concerning that the explanatory memorandum includes, at 1.24: ‘ASIC may change a decision made by an assisted decision-making process if it is satisfied the decision is wrong.’ Can you believe it? This very heavily implies that a human will not be involved in the decision-making process. An assisted decision-making process should only be in place to assist a human in making a decision. There should not be a robot using artificial intelligence to make the decision itself. The fact that Labor would introduce this blank cheque to the new robot overlords in the wake of a royal commission they called into robodebt is a stunning revelation. If the robots get it wrong, there’s no clear avenue of appeal for a person who is subject to the wrong decision. They’ll simply have to rely on ASIC deciding to look at it on their own motion and finding out it’s wrong. Good luck with that. This change is too broad, and One Nation is raising its concerns now so that these issues can be monitored in future. 

To summarise, the government would be better off going back to the drawing board on this con hiding behind the label ‘Treasury laws’. 

One Nation supports an efficient, honest and fair tax system.

A fair tax system is one where tax is not double-charged. That’s what franking credits do. They make sure a tax is not double-charged.

They ensure that Australians don’t pay income tax on the parts of dividends on which the government has already collected company tax. That’s fair. There’s no reason to allow the government to double-dip on Australian profits and then again on Australians’ income.

Transcript

As a servant to the people of Queensland and Australia, I speak on the Treasury Laws Amendment (2023 Measures No. 1) Bill 2023. One Nation supports an efficient, honest and fair tax system. An important aspect of a fair system to is to make sure tax is not double-charged. That’s what franking credits do. They make sure a tax is not double-charged. They ensure that Australians don’t pay income tax on the parts of dividends on which the government has already collected company tax. That’s fair. There’s no reason to allow the government to double-dip on Australian profits and then again on Australians’ income.  

In the 2019 election campaign, Labor proposed changes to the franking credits system. Australia completely rejected those thought bubbles. Labor learnt from that lesson and for the 2022 election, promised there would be no changes made to franked dividends if Australia voted them into government. Yet, now that Labor is in government, schedules 4 and 5 make a number of wholesale changes to how the dividend, share buyback, and franking system currently works. It is a broken promise, yet another to add to Labor’s list of broken promises. Just like when they promised to reduce your power bills by $275, Labor’s promise that they wouldn’t touch franking credits was a lie. As always, the government claims that these are simply modest changes. They’re anything but modest, with large implications for companies and for capital markets. The government hasn’t been able to articulate the need for these changes, nor quantify how big an impact they will have. They’re doing it, and they don’t even know what will happen. We cannot legislate on a hope, a vibe or a wish that it will be okay. While that is, according to some in government, Prime Minister Albanese’s modus operandi, it’s not a responsible way to steer a $1.7 trillion economy. It’s highly irresponsible. One Nation will be opposing these changes in schedules 4 and 5 and cannot pass the bill if they remain part of this package.  

Schedule 2 lays the groundwork for standards that align money to climate goals. This would presumably be to create alignment with the greatest scam in finance: ESG standards—environment, social and governance. The powers that be call them ‘sustainability standards’, yet there’s nothing sustainable about them. In fact, UN sustainability policies survive only as parasites on subsidies from the real economy—subsidies: that makes them unsustainable. So-called sustainability standards talk about protecting the financial system from risks. Yet they cannot quantify what those risks are. The idea that the government or, worse, a single bureaucratic department can ever predict and quantify risk to the financial system is sheer lunacy.

A brief analysis of history shows that. Did the government and regulatory agencies see the risk of the dot com bubble coming in the 2000s? No. They had no idea. Did the American regulators see the risk of subprime mortgages leading to the global financial crisis? No. They arguably participated in and make it far worse. Did any regulator around the world predict the risk of almost every government in the world going certifiably insane in response to COVID, a bad flu? No, they did not. Over the last three years, the Reserve Bank created $500 billion in electronic journal entries, money concocted out of thin air. Did any regulator predict the risks that would lead to the skyrocketing inflation that we’re still trying to get under control? No, they did not. Actually, some did, and we were ridiculed by the experts. The point here is very simple. The government and the regulators cannot quantify the risk of financial system shock. History shows governments are hilariously bad at it. They certainly won’t be able to do it for supposed climate risks that are nothing more than fabrications concocted from inherent, natural, cyclical variation. By the way, everything in nature—everything in existence—varies, yet understanding of variation is not taught in schools and rarely taught properly, if at all, at university. That’s why Green, Labor, Teal and, sadly, some Liberal-National members and senators spout nonsense in this parliament and in public, concocting and spreading imaginary fears of climate apocalypse, when reality shows simply inherent, natural, cyclical variation. 

They cannot even come up with the only sound and essential basis for policy—that is, they’ve never quantified the specific effect of carbon dioxide from human activity. That means they have no basis for climate and energy policy, no specific quantified goals for climate and energy policy and no means of measuring progress towards those goals. We’re flying blind. Australia is flying blind. Energy costs and climate policies are out of control and needlessly imposing huge costs on families, small businesses, our country and our nation’s future. Anyway, the only thing we can do to protect against systemic risks is to make sure that financial intermediaries are well capitalised and diversified to survive any risk that comes to fruition. Doing anything else encourages a lack of diversification and actually increases risk. 

I don’t believe in this climate apocalypse nonsense, this climate fraud, yet even for those who do fall for this illusion there’s no serious risk to anything. Let’s look at the supposed science around climate risk. When I ask the government why we need to cut human production of carbon dioxide, they point me to the United Nations Intergovernmental Panel on Climate Change, the UN IPCC. They’re a dodgy bunch—proven over 40-plus years—yet I don’t think anyone in here has actually read the IPCC reports they claim as proof the climate is going to collapse. If you go to the IPCC’s assessment report 6, you’ll see chapter 12 is the summary of Working Group I, who looked at the actual science around natural disasters. Table 12.12 summarises all of the available evidence on the frequency of extreme weather events. Let me read out the types of natural disasters where even the United Nations has said there has been no detectable increase in the number of natural disasters. I repeat that: no detectable increase in frost, river flood, rain measured in terms of mean precipitation or heavy precipitation, landslide, drought, fire weather, wind speed, windstorm, tropical cyclone, dust storm, heavy snowfall, hail, relative sea level, coastal flood, marine heatwave—and on and on. Although I do not put any trust in the United Nations, government claims it does, and the United Nations says there has been no increase in severe weather events in those categories—none. 

Even better, table 12.12 in the IPCC’s AR6 says the United Nations doesn’t expect to see any detectable increase in those categories in the next 80 years under its worst-case scenario. There’s no risk to the financial system from climate change because there’s no need to cut human production of carbon dioxide—end of story. 

As an aside, I ask: on what basis does Minister Watt get his frequent fanciful, scary claims of increasing extreme weather events? Wild imagination, Senator Watt? From where do the Greens get their dishonest claims? From where does Senator Pocock get his pseudoscience to support his Kermit green fantasy policies? Is it the family money of Simon Holmes a Court, who now relies on the millions of green subsidy dollars that support otherwise unsustainable and failing wind and solar net zero projects—parasitic subsidies from energy users and taxpayers who pay through needlessly higher prices. 

Recently in this chamber I heard Senator David Pocock cite scientists who said they have fears for the climate. Significantly, he did not provide any science to back it up, apparently because he seems to just swallow their words because they claim to be scientists. That’s what’s happened repeatedly in this chamber. People don’t produce the science; they say what scientists conclude and don’t analyse it. Those scientists are on major grants to push the climate fraud. Real scientists don’t peddle unsubstantiated fears. Scientists present science, presenting the empirical scientific data as evidence within logical scientific points, proving cause and effect. Never has anyone done that. Senator David Pocock never presents any such science nor references the specific pages providing such logical scientific points—never. Extreme weather has always been with us. It remains with us and will always be with us. It’s natural and often cyclical.  

So what’s the real reason for implementing so-called sustainability standards and ESG? The Assistant Treasurer, Stephen Jones, said it in his second reading speech to this bill: the purpose is to ‘align capital flows towards climate and sustainability goals’. I’ll say it again: the purpose is to ‘align capital flows towards climate and sustainability goals’—political goals, not scientific. Those are the goals of predatory globalist billionaires and the rent seekers who are flogging wind, solar and battery products, billionaires peddling parasitic mis-investments in solar, wind and batteries and transferring wealth from families, small businesses and employers to billionaires, often overseas. 

Despite claims that these solar and wind products are the cheapest, the free market has utterly failed to adopt them, because they simply cannot survive in the wild on their own, without subsidies. In other speeches in recent weeks, I’ve documented the huge number of failures in wind and solar projects overseas and here in Australia. They’re falling over like flies. Billionaires behind the climate push are panicking now that their parasitic investments won’t get the return they need. The teals’ sugar daddy, Simon Holmes a Court; Andrew ‘Twiggy’ Forrest; Johnny-come-lately to climate fearmongering Mike Cannon-Brookes; and old stagers Alex Turnbull and Ross Garnaut—having failed with climate scams in the free market, these climate doomsayers now need the government to direct money their way through implementation of ‘climate standards’—they’re going to standardise the climate!—to, as the Assistant Treasurer said, ‘align capital flows’. This is more of the crony capitalism that has ruined Australia. If it weren’t so serious, it would be laughable. This is why I’ve circulated an amendment to strike out schedule 2 of the bill. There’s no reason to even start down this path of folly and pretend that, hidden away in the cupboard somewhere, the government have a crystal ball they can use to predict the future. If they do, they clearly haven’t used it before. 

A final concern I’ll raise is with schedule 1, part 2, of the bill. This gives ASIC the power to use ‘assisted decision-making’ processes. That’s their label. This amendment is incredibly broad and vague, and we can assume this will involve some level of automation and, eventually, the implementation of AI, artificial intelligence. It’s incredibly concerning that the explanatory memorandum includes, at 1.24: ‘ASIC may change a decision made by an assisted decision-making process if it is satisfied the decision is wrong.’ Can you believe it? This very heavily implies that a human will not be involved in the decision-making process. An assisted decision-making process should only be in place to assist a human in making a decision. There should not be a robot using artificial intelligence to make the decision itself. The fact that Labor would introduce this blank cheque to the new robot overlords in the wake of a royal commission they called into robodebt is a stunning revelation. If the robots get it wrong, there’s no clear avenue of appeal for a person who is subject to the wrong decision. They’ll simply have to rely on ASIC deciding to look at it on their own motion and finding out it’s wrong. Good luck with that. This change is too broad, and One Nation is raising its concerns now so that these issues can be monitored in future. 

To summarise, the government would be better off going back to the drawing board on this con hiding behind the label ‘Treasury laws’. 

The Palaszczuk Government’s decision to extend payroll tax to contracting GP’s is nothing but a tax on the sick. The treasurer has promised a 2 year grace period, instead, the entire idea of taxing GPs more should be scrapped.

There have been massive increases in debt in the last 12 months, without the necessary objective data to underpin them. That shows, yet again, poor governance of our country. When you take in government charges, rates, levies and fees as well 68% of someone’s average income is taken in tax. That’s working from Monday to mid-morning Thursday to pay for government.

Transcript

Senator Siewert’s motion is that the Senate notes that the Morrison government’s 2021-22 budget left people on low incomes behind. I would go further. This budget leaves the whole country behind, and that means it leaves everyone behind. There have been massive increases in debt in the last 12 months, without the necessary objective data to underpin them. That shows, yet again, poor governance of our country. In Senate estimates, I discussed with the chief medical officer and the secretary of the health department the seven essential components of a plan for managing a virus. The federal government is addressing one; the state governments are addressing another—that’s it—and they have both been addressed poorly.

I want to discuss the productive capacity because that’s what determines the wealth and the economic security, and, indeed, sometimes the defence security of our nation in the future. The productive capacity of our country has been declining considerably since 1944 and, in fact, since 1923, if we want to get into basics—but that’s for another day. Let’s look at the most important part of productive capacity—the human asset, our people. Look at education, because it’s the future leaders of this country who will determine the future productive capacity, as well as us determining that capacity today. We have declining scores in education. Reading and writing, mathematics and science—declining. By world standards, we are falling well behind in the core aspects of education but we devote plenty of resources, plenty of time, plenty of energy to teaching kids—misleading kids—about gender fluidity, critical race theory, non-gender language and a national curriculum that the government forks out money for yet cannot control. That’s what has been told to us by the federal government.

We need charter schools. We need parents to have more say in the running of their schools, and principals to have more say in the running of their schools; parents to control what values are passed on; and parents to decide whether or not their children will be taught about gender fluidity. I want to compliment Mark Latham in the New South Wales parliament and my colleague Senator Pauline Hanson for the bills they are introducing and evaluating right now to restore values and common sense to education. I note that Singapore, Japan, and Korea have really moved ahead in recent years, as has Taiwan. They all have solid basic education.

What’s happened to apprenticeships in this country? Senator Lines moved a motion today with regard to apprenticeships sadly lacking in WA. Senator Hanson has proudly introduced an apprenticeship scheme that the government has taken and refurbished and expanded, such is the success of her suggestion on apprenticeships. What has happened to universities? They followed our primary schools and high schools in becoming more woke and driven by anything but education. As for university education, it is now just pushing an ideology. Our TAFE systems have fallen into disrepair; our trades qualifications are falling into disrepair.

Let’s move on then to the workplace. The Fair Work Act is an abomination. It is about that thick in pages printed. It destroys the employer-employee relationship, which is essential for productive capacity. It is difficult for anyone, an employee or a small businesses employer who doesn’t have access to lawyers and consultants and HR practitioners to work their way through that. How can they possibly be held accountable for that relationship when they can’t even understand it and never will understand it, not because of lack of intelligence but because of lack of time and surely being overwhelmed? Again, just like education, this is poor governance to get into this state.

Then we go to energy—arguably the most critical in material resources because energy has determined the competitiveness of every country. Under President Trump America reversed the decline in its competitiveness because it reversed its increase of energy prices and it started to decrease its energy prices again. America became more competitive against its competitors and blossomed because of that. President Trump created more jobs than any president in history because of that and because he cut away regulations.

This government and its predecessors have fiddled the Renewable Energy Target, destroying our baseload coal-fired power stations, our grid. The network costs are destroying our grid, making it unaffordable. Retail sectors of electricity are just a fabrication. The national electricity market is now a national electricity racket. It’s not a market at all; it’s a bureaucracy that’s interfered with and manipulated by bureaucrats looking after vested interests. Then we see privatisation. The Queensland Labor government is taking about $1½ billion every year from people who use electricity—businesses, small businesses and families—and that is now a tax. We have taxes on electricity. Why is it that the Chinese can produce electricity and sell it for one-third the cost of electricity sold in this country when they use the same coal as we do? They take it thousands of kilometres, burn it and sell the coal-fired power to their consumers and we sell it for three times as much because of regulations that come out of both sides of this parliament.

Then we look at water. The Murray-Darling Basin has been gutted. Communities have been gutted. Regions have been gutted. And nothing is happening about it. Today we passed an amendment to restore compliance with the law, the Water Act of 2007, with regard to water trading. It was supported by the Labor Party but denied by the Liberals and Nationals. They don’t want to comply with the Murray-Darling Basin Plan. It went down to the lower house and Labor changed and sent it back here, in cahoots with the Liberals and Nationals. That will continue to destroy water allocations in our country because it will continue the corruption and the likely—I’m very confident in saying this—criminal activity going in the Murray-Darling Basin with regard to abuse of water trading.

Then we see property rights, which are fundamental to running a farm or a business. They were capriciously stolen under the Howard-Anderson government in 1996 and then progressively by Labor premiers from Queensland and New South Wales, jumping on the bandwagon to steal farmers’ property rights. Why? To comply with the United Nations Kyoto protocol of 1996—that’s why. Farmers have lost the value of their land. We see that extended in Queensland, for example, by the Queensland state government, relying on bogus claims about the reef to lock up land. We then see the federal government enacting carbon farming, where vast tracks of good farmland are laid waste, abandoned and taken over by feral animals and noxious weeds. There are costs to managing them as they spread around the country and fall on their neighbours’ properties. This is another example of poor governance. There’s a lack of infrastructure in water. The Bradfield scheme is crying out for investment.

Then we go to the most destructive system of all in our country, the Australian taxation system. In 1996 and 2010, Jim Killaly was the deputy commissioner of taxation for large companies and international matters. He said on both occasions—1996 and 2010—that 90 per cent of Australia’s large companies are foreign owned and, since 1953, have paid little or no company tax. They use our resources, people, assets, defence forces, police forces and education system and pay nothing in return and just take. The Japanese, by comparison, have in their large companies 2.5 per cent foreign owned. The American and the British figures are about 12.5 per cent. Who pays for these foreign companies to use our assets and to make money without paying company tax? The people of Australia pay for that through families paying taxes, individuals paying taxes, small businesses paying taxes and some large Australian come companies paying 30 per cent against their multinational competitors who don’t have to pay that. How can we possibly compete? Then we found out in the late 1990s and early 2000s—and I’ve asked the Parliamentary Library to update this figure—that a person on an average income in this country pays 68 per cent of their income to government. Housing is not our largest expenditure in life; government is, through taxes, rates, fees, levies, chargers, supercharges and special charges. Joe Hockey admitted when he was Treasurer that 50 per cent of a person’s income is taken in tax. He said people work from January through to the end of June for government and then they keep what’s left. The actual figure, when you take in government charges, rates, levies and fees as well, is 68 per cent, which means that someone on the average income is working from Monday to mid-morning Thursday to pay for government.

Then they have what’s left, the two-thirds of Thursday and Friday, to pay for their entire life: their retirement, their education, their food, their shelter, their car, their transport, their entertainment. That is not fair, and it shows poor governance. I haven’t got time now to talk about attempts to reform taxation, but both parties, both the tired old parties, have shown a reluctance to invest energy and political will and sheer guts in tackling—and they lack the integrity to tackle—comprehensive tax reform.

I mentioned infrastructure a minute ago. What about projects like the Richmond agricultural project? What about the irrigation project up in Hughenden? What about things like Iron Boomerang, which would transform our country and make it the most cost-effective and largest producer of steel, and give us enormous security for manufacturing and for our defence? Then we have things that tap into that Iron Boomerang—things like an inland rail that’s being destroyed by the Liberal-National government, an inland rail that is sucking up resources and coming up with something that will be far worse than the existing installations, especially when we consider the blowout in the cost. Again, it’s a lack of data, a lack of sound planning. An inland rail and a proper route through to Gladstone would be part, then, of a proper national rail circuit.

Madam Deputy President, I submit to you these points that show and prove that the government here has not only left the poor behind, as Senator Siewert points out; the government has put additional burdens on the poor, the government has put a regressive tax on the poor in terms of energy prices. Energy prices are increasing alarmingly, and the poor have to pay a higher and higher and higher proportion of their income on a fundamental, which is energy. And then the poor pay for it because they lose their jobs when our manufacturing jobs and some of our agricultural and agricultural processing jobs are exported to China, which uses our raw materials—gas and coal—to produce electricity far more cheaply than we sell it for in our own country. So we’re losing out entirely and we lose out in the diminishing of our defence security.

So I certainly agree with Senator Siewert that the Morrison government’s 2021-22 budget has left people on low incomes behind. It has left people right across the country behind. It has left Australia behind.

Millions upon millions of parcels flow into Australia every month. Some dodgy operators avoid paying GST on imports by understating the value of the goods being posted. This is a huge disadvantage to our Aussie shops and we need to be doing more to enforce the rules on GST for foreign imports.

Transcript

[Malcolm Roberts] I have some brief questions on border force. How many parcels come through Australian border force each financial year?

So Senator just give me one second. I’ll just get, I might just ask deputy commissioner Saunders to join me at the, the front table as well. In terms of parcels, probably I might describe it slightly differently if I could. So air cargo consignments, if I could start there cause Senator the goods coming into Australia, primarily from a border screening point of view is either sea cargo, stuff that comes in containers, air cargo, stuff that comes in crates in the belly of aeroplanes and international mail. So in terms of air cargo consignments between the 1st of July, 2020 and the 31st of March, 2021 there were 54,340,909 consignments in relation to sea cargo, there’s been a significant uptake. So I’ll give you the numbers for 19 and 20 first of all. So between the 1st of July, 2019, 31st of March, 2020 there were 2,472,286 consignments. Between the 1st of July, 2020 31st of March, 2021, 7,449,539 consignments. The reason for that is because of COVID-19 because of changes in logistics, supply chains, etc, a lot of people shopping from home, smaller consignments and the the freight forwarders need to get it here somehow. And there just isn’t a number of aeroplanes coming to Australia to support all of that coming through air cargo. So a lot of, a lot of the smaller consignments are now coming in containers and that’s led to a significant increase. In terms of international mail you see that data is actually commercially confidential because obviously Australia posts are in competition with you know, freight forwarders and other sort of international supply chain sort of companies. And, we don’t put those numbers out there Senator in terms of Australian international mail.

[Malcolm Roberts] Okay. But the total number of consignments for the nine months, July 20 to March 21 was 54 million, including air, mail and sea.

Well not including mail, I can’t give you that number because that’s commercially sensitive because Australian posts are sort of a, you know there’s a single commercial entity and they’re in competition with other people in the market. We don’t put that number out there. So what I’ve given you is in terms, sorry, air cargo consignments 54,340,909

[Malcolm Roberts] That’s just for air.

That’s for air, cargo. And for sea cargo an additional almost seven and a half million, 7.449 million.

[Malcolm Roberts] Okay. Thank you very much for that. How many of these parcels are checked for value and whether or not GST is applied?

I might just call

[Malcolm Roberts] Sorry commissioner, just on that number, the sea cargo is that, how are you quantifying that number?

Consignment, so a consignment is obviously

[Malcolm Roberts] Do you define that as per container or how

No consignment is if you import a good into Australia, that’s a consignment, so that could be an entire container load that you have or if you’ve got lots of lines of goods in a container, so let’s say a freight forwarding company wants to get a lot of consignments to Australia, previously they might put them in a crate in the belly of an aeroplane, whereas now they’re putting them in containers. So we’re getting containers with lots and lots of consignments in them.

[Malcolm Roberts] I see, thanks for clarifying.

Does that make sense?

So it’s an individual entry for an importer of a good and that can be a private person or a commercial entity.

[Malcolm Roberts] Thank you. Thanks.

Thanks Senator Roberts. I might just ask Vanessa Holben here in terms of the, the GST question. If I could, it goes to matters of customs policy.

Vanessa Holburn group manager, customs group, Australian Border force. So your question is related to GST?

[Malcolm Roberts] Yeah. How many of the parcels that come in, consignments, are checked for value and have GST applied?

So I’ll need to take on notice the number of consignments that are checked. What I can give you though, is the dollar value of the undetected, undecided GST detected?

[Malcolm Roberts] The under?

The undecided GST detected. So that’s, that’s where they haven’t obviously claimed GST. So the dollar value, would you like it in the financial years?

[Malcolm Roberts] Yes, please.

So 2019-20, 25,827,753. I can go previous years if you’d like to as well.

[Malcolm Roberts] No it’s fine.

Year to date, so 31st of March, 2021, 411,719.

[Malcolm Roberts] So that’s the, could you say that again? What is that 25 million?

So we determine it, we determine it as understated, GST detected.

[Malcolm Roberts] Understated, GST detected.

Correct.

[Malcolm Roberts] So what does that mean? Understated? So that means only the only the parcels that have been where the GST has been understated and where it’s detected.

Correct.

[Malcolm Roberts] So what proportion of parcels are waved through without checking to see if GST should be paid.

That’s what I need to check on notice for you.

[Malcolm Roberts] Okay. Thank you. Is there any estimation of how much GST has not been paid per year? It’s a massive task as, as Mr. Adam just told us.

Again, I’ll need to check that on notice.

[Malcolm Roberts] Thank you. How many notices are sent out to call in GST prior to the parcel being released?

I’ll need to check that on notice Senator.

[Malcolm Roberts] What is the estimated loss to Australia per year for the lost or forgone GST?

I’ll need to take that on notice

And senator, we’ll take that on notice, but also we do obviously with GST, recognise other departments have a stake in the GST question, the ATO and treasury. So we will take it on notice, but we’ll, we’ll also link in with our other departments who have an interest in the GST policy.

[Malcolm Roberts] Thank you. What has been done to assist the cost of this forfeit and to implement a remedy. We’ve got to define the problem before we can solve it. With 54 million consignments, I’m sorry, 61 million consignment, it’s a pretty massive opportunity.

Can you repeat the question again Senator?

[Malcolm Roberts] What’s been done to assess the, the loss of revenue the forgone revenue, and to implement a remedy.

We can talk about our audit inspection control programme.

So, so the compliance, we have a compliance programme obviously to detect non-compliance through those avenues.

[Malcolm Roberts] That’s sampling is it?

Correct, yes so there’s targets and there’s profiling. Also we do business engagements, that’s around educating those that are importing to ensure that they are quickly classifying the goods and obviously paying those duties attached to those goods.

[Malcolm Roberts] So there’d be hidden costs, is the government, I don’t know who to ask this question of, perhaps a minister, perhaps Mr. Adam, is the government aware of the hidden cost to Australian manufacturers and retailers who must add GST to their goods, whereas imports bypassing customs do not?

Probably a matter of policy I suggest, and maybe a different department would be best placed to answer that.

I’ll say, we are aware in the general sense of the matters you raise, but I’d need to take on notice the quantum of that.

[Malcolm Roberts] Yeah, so depends on the size of the problem, I understand that. So is it possible to consider another solution being tax reform? Another way of levying the tax?

Those options are always available to be considered by policymakers.

[Malcolm Roberts] Okay, Thank you very much.