Interview on ABC Afternoon Briefing with Patricia Karvelas 

Subjects: Labor’s 387 billion tax hit; Adani; Gladys Liu  

EO&E…………………………………………………………

PATRICIA KARVELAS:

Labor states have asked the Coalition to rule out any further cuts to health education or other services to achieve the spending reduction required to maintain the surplus and to pay for your tax cuts. Will you do that?

SIMON BIRMINGHAM:

Well indeed we have grown funding for schools for hospitals by more than 60 per cent while being in office and that will continue to grow under a re-elected Liberal National government, so those states and territories can be confident there’ll be continued growth in funding for schools and hospitals and roads, and today’s pre-election fiscal outlook, released independently prepared by the Treasury and the Australian government demonstrates that we can under current policy settings, deliver the budget surplus growing that surplus over time to 1 per cent of GDP and that we can continue to invest growing sums in schools and hospitals and roads and we can deliver the tax cuts that we promised to the Australian people, all of that comes from having a growing economy which underpins jobs growth, revenue receipts for Government and allows us to be able to do that.

PATRICIA KARVELAS:

Minister I’ve got to pick you up on this you say this health spending and education will grow, sure it will grow population is growing so you’re giving yourself some room there. That’s not the question, will there be no cuts over the whole trajectory of these tax cuts?

SIMON BIRMINGHAM:

There will not be cuts, there will be growth.

PATRICIA KARVELAS:

What time frame can say there will be no cuts because we know that this tax plan is actually a very long term tax plan, this is a 10 year tax plan you’re talking about here, so that’s the timeframe you will guarantee there’ll be no cuts to these essential services?

SIMON BIRMINGHAM:

Absolutely we can and we can do that because we’ve got clearly laid out in the budget, both the forward estimates and the medium term projections, demonstration that the economic growth that we will continue to deliver as a government who is able to soundly manage our economy allow businesses to grow, create more jobs and from that generate more revenue, we will continue to reinvest that as we have done carefully in growing funding for schools and hospitals and roads because that’s what we value, but the difference is…

PATRICIA KARVELAS:

So no cuts to health and education for 10 years, you’re telling me under a coalition government?

SIMON BIRMINGHAM:

Support for health and schools and roads will continue to grow under a Liberal National Government,

PATRICIA KARVELAS:

There will be no cuts for 10 years?

SIMON BIRMINGHAM:

I cannot be clearer that there will continue to…

PATRICIA KARVELAS:

For the life of these tax cuts?

SIMON BIRMINGHAM:

…be growth, because we’ll fund that out of the growing revenue we have from a stronger economy to the economy. That’s what PEFO clearly demonstrates today and that’s what we have been able to do, I mean the reason we’ve got to a point where we’re able to hand down a budget where it’s being backed up in today’s PEFO that has a surplus there is because we’ve grown the economy while still investing more 60 per cent plus growth in funding for schools and hospitals,

PATRICIA KARVELAS:

Alright…

SIMON BIRMINGHAM:

Patricia, I think it’s important to do a compare and contrast, you know we’ve handed down or PEFO that’s been released by the Treasurer in today and it backs up what our budget said, the last time Labor was in office the last time they were in office and there was a massive deterioration in the budget in just 11 weeks, $33 billion.

PATRICIA KARVELAS:

I don’t want to talk about Labor, I talked about labor with Labor yesterday,

SIMON BIRMINGHAM:

The contrast is important, because it’s a choice at the election.

PATRICIA KARVELAS:

Of course there is choice, but this is a choice too. Your forecast health spending will grow 0.7 per cent a year over the next four years, but it’s averaged 3 per cent a year for the last four. How will it suddenly come down like that?

SIMON BIRMINGHAM:

Well Patricia what we have in place is a vast growth that is being experienced in terms of health expenditure in recent years 60 per cent plus growth under our government in a fairly short period of time in what is being provided just to hospitals to state and territory governments to run their hospitals, and we’ll see continued growth in that over the next few years, but we’ve brought that up to a much higher level, and of course percentage growth off of a much higher base is still then very significant extra dollars going into our public hospital systems, will continue as well as we’ve made very clear to back the experts in terms of listing of new drugs to help people in their services in this year’s budget, we outlined quite comprehensive new plans in terms of mental health support opening of new Headspace clinics, support for Indigenous health services, it’s about a fully comprehensive integrated health investment plan and that’s what we handed down this year.

PATRICIA KARVELAS:

Minister, there is modelling coming out tomorrow, modelling by the Australia Institute and its found out that your plans to reduce the top marginal tax rate to 30 per cent will deliver $77 billion in tax cuts to people already earning over $180,000 a year over the next decade. Why would People on such high incomes made up a large tax cut that quite a staggering figure? $77 billion.

SIMON BIRMINGHAM:

Well Patricia the Australia Institute is basically the research tank of choice for GetUp so lets…

PATRICIA KARVELAS:

No, no it’s $77 billion.

SIMON BIRMINGHAM:

I’ve not seen the Australia Institute research and frankly I discount it given the biased source that it comes from,

PATRICIA KARVELAS:

The figures are the figures Minister.

SIMON BIRMINGHAM:

What I think is important for Australians to understand is the divergence in terms of the tax policies of the Liberal and National Parties versus the Labor Party, kicks in at $45,000, so Labor seems to think that if you’re earning more than $45,000 you ought to be paying more tax in the future relative to what we believe, so we’ve made it very clear that we will deliver significant lift first and foremost this year more than a thousand dollars for many families, by addressing the low and middle income tax offset, then we want to fix bracket creep and we’re going to fix bracket creep firstly by abolishing the 37c in the dollar tax bracket and then we’re going to go further by taking the 32.5c in the dollar tax bracket, reducing that to 30c and increasing the threshold number to $45,000 wage earners which means the vast majority of Australian families and Australian workers never pay more than 30c in the dollar in tax.

PATRICIA KARVELAS:

Is $77 billion in tax cuts going to people earning over $180,000?

SIMON BIRMINGHAM:

So high income earners, those top income earners will still pay around 60 per cent…

PATRICIA KARVELAS:

Sure and will they get back $77 billion?

SIMON BIRMINGHAM:

…of income tax receipts they will pay the vast majority of income tax but what we want to ensure is those middle income earners whether you’re a nurse, teacher or tradie that you are not paying more than 30c in the dollar on your tax.

PATRICIA KARVELAS:

That’s your entire tax plan, but $77 billion?

SIMON BIRMINGHAM:

$387 billion in extra taxes under Bill Shorten. The election is a choice.

PATRICIA KARVELAS:

$77 billion going to people on over $180,000 is that fair, that’s my question, and do you think that’s fair?

SIMON BIRMINGHAM:

I think it’s very fair that workers earning $45,000 deserve a tax break, I think it’s very fair that those who choose to work an extra shift, work an extra day, take on an extra job, ought to keep their earnings rather than be pushed up into a higher tax bracket,

PATRICIA KARVELAS:

Is it fair for people earning…

SIMON BIRMINGHAM:

I think that is incredibly fair…

PATRICIA KARVELAS:

over 180 000 to get $77 billion?

SIMON BIRMINGHAM:

…and that’s what our tax reforms do and those on the highest incomes will continue to pay the vast majority of income tax in this country, they’ll be no change in that 

PATRICIA KARVELAS:

Sure, but do you accept they are about to get $77 billion back?

SIMON BIRMINGHAM:

Patricia the portion of support in terms of relative incomes from people paying their tax, well and truly is weighted towards supporting middle income earners under our changes and many of those middle income earners if they’re also trying to save for their retirement, will be a damn sight better off as well under the Coalition, they won’t face extra taxes on their superannuation, they won’t face extra taxes on investment properties, they won’t face extra taxes when they try to get ahead in life a little bit, there will be better job security for them because we’ll have a stronger economy that won’t be being taxed, I mean the reality is $387 billion of higher taxes under the Labor Party many Australians will have fewer dollars in their pockets when they walk into a local shop to be able to spend doesn’t mean whether are retiring.

PATRICIA KARVELAS:

According to this modelling these higher income earners will pay a lower overall percentage of the total tax take?

SIMON BIRMINGHAM:

I don’t accept the Labor, Greens, GetUp modelling agency of choice when it comes to the way they do their economic analysis and what we’ve been very clear about, I think what is really very important for Australians to focus in on. is that ordinary income earners ordinary income earners, NATSEM found that an average wage in Australia would be $1000 a year worse off under Labor’s income tax policy, that’s before you take into account the retiree tax, the housing tax, the higher electricity prices, the higher motor vehicle prices that would come under the Labor Party, so the choice is there if Australians want lower tax and more in their pockets for working hard and for ordinary Australians going about their business. They are going to find it better off under Liberal-National Government.

PATRICIA KARVELAS:

The Prime Minister originally said the low and middle income tax offset wouldn’t have to be legislated but it turns out they do have to be legislated, that’s a blunder isn’t it?

SIMON BIRMINGHAM:

Patricia, there’s plenty of time to make sure that we put in place the tax measures that we’re taking to this election and we are very confident that if we’re elected we have a clear mandate, there’s no doubt about the disparate tax policies between the Liberal and Labor parties, people vote Liberal National they’ll get lower taxes, and I trust the Parliament will support the swift legislation of our tax package.

PATRICIA KARVELAS:

But you can’t do it administratively can you? 

SIMON BIRMINGHAM:

Patricia, what we want to do is see our entire tax package implemented, that’s what we’re taking to this election, that’s what we will take to the Parliament as quickly as we can after this election to make sure we deliver on our promise to the Australian people, you know six years ago we promised the Australian people a stronger economy a balanced budget more jobs to ensure we had secure borders, and we’ve delivered on all of those things. This election we’re taking to the Australian people a strong economy, more jobs, 1.25 million more jobs over the next few years, lower taxes, we will deliver on all of those things to if we’re elected.

PATRICIA KARVELAS:

Minister, Queensland Liberal National Party MP Michelle Landry confirmed this morning that Adani had donated to her campaign. Are voters entitled to be cynical about her support for this mine? Shouldn’t we know how much they’ve donated to that campaign?

SIMON BIRMINGHAM:

She also made clear that she has no engagement in terms of the fundraising for her campaign or control of the dollars, that she knew they’d attended a function or two, that’s what she said this morning so let’s keep that in perspective, she knew that when she’d invited people to come to fundraising events, they turned up and they had attended a function or two, to say let’s keep it in perspective there…

PATRICIA KARVELAS:

Shouldn’t there be transparency around all of this?

SIMON BIRMINGHAM:

You shouldn’t create conspiracies around this and nor should anyone else. Adani is being subject to the same laws of the land as anybody else in terms of the environmental hoops they have to jump through, the approvals the conditional approval that was given for the mine to proceed to the next stages of assessment, contained more conditions than any other environmental approval of any project in Australian history, so they’ve hardly had an easy time of it and there are still further hoops that the project will have to jump through, in terms of meeting those conditions to be able to get to the point of production.

PATRICIA KARVELAS:

Do you think those comments made by your candidate for Chisholm Gladys Liu were hydrophobic?

SIMON BIRMINGHAM:

Look I think the comments and as far as I heard them and saw them and she was not reflecting a personal opinion she was offering an assessment of what she thought a part of the community believed, and let’s make sure that it’s understood the words were a reflection of what she thought others were believing. I think the comments don’t reflect my views or values, I’m very pleased that in the years since those comments were made I think the entire Australian community has come a long way on a very positive journey that is seen as legislating legalise same sex marriage, and I think sees people today recognized that that positive reform that happened last year is a reform that hasn’t changed our country for the worse in fact it’s changed our country for the better and being a more inclusive society.

PATRICIA KARVELAS:

But this concept of representing these views is that really the case that that community feels this way about gay people? Do you accept that argument she was making.

SIMON BIRMINGHAM:

Well I think if you look at the different voting patterns that occurred in the postal survey, there are parts of Australia that of course didn’t vote as strongly yes or in some instances voted no relative to other parts of Australia

PATRICIA KARVELAS:

I understand Chisholm, that electorate voted yes though?

SIMON BIRMINGHAM:

Well I think she wasn’t talking about an electorate, she’s talking about parts of our different ethnic communities and if you look at concentrations of no votes there’s a certain correlation that exists there, but I do think that all parts of Australia I hope and have come on the journey over the last few years and in particular since the legalisation that occurred last year and that there is an understanding now that the legalisation of same sex marriage has been a positive for Australia and that we actually have a more inclusive society and that is something that we ought to celebrate and we ought to make sure that those who still have qualms we continue to bring on that journey in a positive way.

PATRICIA KARVELAS:

Simon Birmingham Thanks for coming on today

SIMON BIRMINGHAM:

Thank you Patricia.

[ends]

Media Contact: Coalition Campaign Headquarters: T: (07) 3557 7533 / E: media@cchq.org.au