Page 2280 - Week 08 - Wednesday, 5 June 2013
and collect this lost revenue through rates. Rates revenues last year was $173 million, and you would need to increase this by $347 million to make up for the lost revenue. This is an undeniable mathematical tripling of rates revenue. Yesterday’s budget shows that rates are increasing, on average, 10 per cent a year every year, which would result in rates tripling in just over 11 years. Treasurer, you have consistently denied rates will triple to complete your reforms, and have consistently refused to table or publish the projections of rates increases to complete your reforms. Do you still stand by your commitments that rates will not triple to complete your reforms, and will you now explain how you can transfer lost revenue from stamp duty to rates without tripling rates revenue?
MR BARR: I thank the Leader of the Opposition for the question. The Leader of the Opposition appears to fundamentally misunderstand how taxation works. He appears to have no understanding of the concept of inflation. He seems to have no understanding of the concept of inflation. He seems to assume in his mathematical model that there is no growth in the city at all, that there are no extra taxpayers over a 20-year period. He also assumes—
Mr Hanson interjecting—
MADAM SPEAKER: Order, Mr Hanson! You have asked your question.
MR BARR: He also assumes that over a 20-year period there will not be further reforms to commonwealth-state financial relations. He also assumes—
Mr Seselja interjecting—
MR BARR: We do receive more money from the commonwealth from time to time, Mr Seselja. Are you suggesting that at no point in the future—
Mr Smyth: It’s the magic pudding.
MR BARR: Are you suggesting that at no point in the future—
Mr Smyth: I thought Tony wasn’t giving us any more money.
MR BARR: I do not expect Tony Abbott will be a long-term prime minister, if he is a prime minister at all. I do not believe he will be a long-term prime minister, if he is prime minister at all.
MR BARR: When it comes to magic puddings, the Leader of the Opposition is the man who wants to cut taxes but does not believe that you need to raise any revenue to run government services. He is an economic imbecile.
Mr Seselja: Point of order.