Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Cormann. I remind the minister that, before the election, the Prime Minister denied there would be any increases in tax under a Liberal government. Given that the minister announced by ambush today an increase in the petrol tax, can the minister please explain why the Prime Minister lied to the Australian people?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

That has to be withdrawn.

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

He does that all the time.

Stephen Parry (President) Share this | Link to this | Hansard source

Order! Senator Cameron, please desist from interjecting. Senator Dastyari, you were referring in an unparliamentary way to the Prime Minister. If you withdraw that element I will then call upon the minister to answer the question.

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

I withdraw. Can the minister please explain why the Prime Minister misled the Australian people?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Let me reject right up front the final assertion that the senator has made. Let me also clarify for the Senate that what I have announced today are revised implementation arrangements for a measure announced in the budget on 13 May—and, of course, that budget measure was to ensure that the real value of the excise on fuel does not continue to fall. Something that might have escaped the Labor Party and the Greens is that the real value of the excise on fuel has continued to fall since indexation of fuel excise was abolished in 2001. Back in 2001 the fuel excise was 42 per cent of the average fuel price; today it is 25 per cent. And, of course, as we speak here today, the Greens, in particular, are advocating a position that the real value of the excise on fuel should continue to fall. Our position on this side of the chamber is that it is an important structural reform of the budget to ensure that the real value of the excise on fuel does not continue to fall, and that it keeps pace with inflation.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Why did Abbott mislead the Australian people? You lied to people before the election.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

If Senator Wong would give us the courtesy of listening to the answer, she would know that her interjections are based on a completely false premise—because, of course, the fuel excise indexation measure will ensure that the real value of the excise on fuel does not continue to fall, that it remains constant in real terms and that it keeps pace with inflation. I do not know how many other ways I can explain this—

Stephen Parry (President) Share this | Link to this | Hansard source

Pause the clock.

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I rise on a point of order on direct relevance. I asked a very specific question about why the Prime Minister said one thing before the election and did something different after the election. The minister has not answered the question.

Stephen Parry (President) Share this | Link to this | Hansard source

To the contrary, Senator Dastyari, right up-front the minister rejected that aspect of your question. The minister rejected the question and he answered it directly. The minister then went on to explain. The minister has 17 seconds left to continue his answer.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

What the Prime Minister said very clearly before the election is that the coalition would fix the budget mess that Labor left behind. We are fixing the budget mess that Labor left behind and we are making sure that the tax on fuel does not continue to fall. We think that from 42 per cent down to 25 per cent—(Time expired)

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Minister, won't this hike in the fuel tax mean that in two weeks time families will pay more every single time they go to the bowser?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Let me just say right up-front that under the coalition, over the forward estimates, taxes as a share of GDP will be lower than they would have been under Labor—so let's just get that one right out of the way—in particular because we got rid of your great, big, new carbon tax. The second point I would make is that the impact on households from our fuel excise indexation measure will be modest. By the end of the financial year—

Opposition Senators:

Opposition senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Pause the clock. Order! Minister, you have the call.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

By the end of the financial year, a typical household will pay about 40c more per week for 50 litres of fuel, but the impact on our capacity to grow a stronger, more prosperous economy will be significant, because the government will be able to raise $2.2 billion in revenue over the forward estimates, which we will be able to invest in productivity-enhancing, job-creating economic infrastructure. And, of course, over time, as our economy grows more strongly, we will be able to generate more revenue for government and that will help us to fix up the mess that the Labor Party left behind and to fix up the mess that Wayne Swan and Penny Wong left behind. (Time expired)

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister confirm that any refund of this tax, if it is rejected by parliament, will go to big oil companies and not Australian families?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Those of us who have been in this chamber for a while remember that in opposition we can all be very brave and courageous in making assertions and predictions on what we might do 12 months down the track. Let me just say that I am very confident that on reflection, within 12 months, Labor and the Greens may have another thought about whether or not to support this particular measure. I am very confident that the proposal that we have announced today will be validated within 12 months by the parliament.

Stephen Parry (President) Share this | Link to this | Hansard source

Pause the clock.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I rise on a point of order on relevance. It is a very important point that has been asked of the Minister for Finance—that is, if the tax is rejected, who gets the refund? I think Australians are entitled to know whether they would be refunded or whether the refund would, in fact, go to the companies.

Stephen Parry (President) Share this | Link to this | Hansard source

On the point of order, the question was prefaced with, 'Can the minister confirm,' and, as you rose to your feet, I think the minister was just about to do that.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Because on this side we are so helpful, I will not claim the standing order that you should not ask me for legal opinion—because, of course, the effect of his question is that he was asking me for a legal opinion. The effect of the law, as it stands, is that, if the fuel excise indexation arrangements are not validated by the parliament, the funds will be refunded to the taxpayer who was responsible for paying the tax in the first place—that is, fuel manufacturers or fuel importers. That is something for the Labor Party and the Greens to think about. (Time expired)