Transcript No. 99/25

Hon Peter Costello MP

Doorstop Interview

Thursday 8 April, 1999

8.50 am

SUBJECT: Premiers’ Conference

JOURNALIST:

Treasurer, yesterday the Treasury official said, that they were concerned that the

compensation package for pensioners might be eroded. Does that damage your case for the

GST?

Well of course they didn’t say that. What, the point that was made yesterday

was that as a result of increases in pensions all pensioners get rises in their pensions

faster than prices. That is the value of pensions goes up. The question was asked, well

what happens if wages go up higher in the future than prices? The answer is pensioners are

even better off. The important thing that happened yesterday was that the Labor

Party’s preferred modeller, Anne Harding, found that there were no losers as a result

of the Government tax change and that everybody received benefits. Now, I think that ends

the argument. Nobody has yet identified any class of person that would be worse off under

tax reform.

Mr Costello is there any scope for any money for the states for transitional

arrangements under the GST?

Well, lets put this in a big context, isn’t it? The states are here today to

discuss their share of GST. But we’ve still got a long way to go haven’t we, to

get a new tax system in Australia. But we welcome the fact that the states are all very

supportive of tax reform. That they’re here to negotiate their shares. And this is

not a bottomless pit, we’ve got to make sure that we keep the Commonwealth of

Australia in a good financial position, and the states in a good financial position.

There is room to offer a bit more money to get them to sign on the dotted line?

Well, when you say offer more money, the Commonwealth offer to the states is to

give them all of the revenue from GST. All of the revenue from GST. The most generous

offer in federal history. Now, you can always say I’ve had the best offer in federal

history but, I’d like the best offer but 5 per cent. You’ve still got

the best offer. The best offer.

So where does your pit end?

Well, our pit ends with the Australian taxpayer. Bear this in mind, Governments

that want more money are Governments that are arguing for taxpayers to pay for it. I mean,

I’m here to protect the taxpayer as much as anybody else.

Mr Beattie says he’ll lobby Mal Colston hard over the GST if they don’t

get more compensation. Is that a concern to you at all?

I’ve spoken to Senator Colston as late as today, because Senator Colston is

somebody who has very well represented the state of Queensland. And I had discussions with

Senator Colston this morning, he put to me his views on tax reform and I thought he made a

very good case, so I can tell you this, Senator Colston is doing a good job for

Queensland.

Does he share . . .

He’s doing a better job for Queensland than some of those Labor Party Senators

that are immovable on the subject.

Thanks.