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Wednesday, 8 March 2000
Page: 14161


Mr WAKELIN (2:36 PM) —My question is addressed to the Minister for Agriculture, Fisheries and Forestry. Minister, what benefits are there for rural and regional Australia from the government's new tax system with regard to the possible alternative tax proposals that have been floated? What impact would proposals such as winding back the GST have on rural, regional and farm based communities?


Mr TRUSS (Minister for Agriculture, Fisheries and Forestry) —I thank the member for Grey for his question. As the honourable member for Grey knows, as he represents a large number of farmers in an area where it has been particularly difficult over recent times, farmers are largely price takers. They cannot influence the world prices that they receive for their products and, therefore, it is very important for them to have the lowest possible cost structure. That is why the government's new tax system, which delivers a billion dollars worth of savings to farmers, is of such importance to rural Australia.

I am aware that there is an alternative policy around. I am told that it has the title `roll-back', but that largely the book is empty. We do not know anything about what is in this policy. We just know that it is called roll-back. It is important for those who are proposing roll-back to tell us whether roll-back intends to roll back the savings to farmers that will be achieved under the new tax system. For instance, the grain industry can expect to gain about $30 million every season from the abolition of excise on the diesel fuel used in the freighting of their grain by train. Are they going to wind that back under their new policy, or are they going to roll back the cuts in income tax that will mean that around three-quarters of all Australian farmers will pay no more than 17 cents in the dollar? Is that what Labor are going to roll back under their new policy? Or are they going to roll back the increases in the tax-free threshold which will benefit all low income Australians?

There are a number of women in agriculture who are in Canberra today to commemorate the outstanding achievements of women in agriculture. Awards will be presented this evening in recognition of the tremendous role that women play in supporting farm businesses and in keeping the rural infrastructure alive and well. Women involved in farm businesses have been very strong advocates of rural families and the need to do more to support families who are bringing up their children in a country environment. One of the remarkable things that will happen under the new tax system is that rural families will benefit from the abolition of the assets test on the family allowance. Farmers have long been critics of assets testing. Here is an example of an assets test not just being rolled back but being abolished lock, stock, and barrel. What is Labor going to do about that? What is the honourable member for Capricornia going to say to the rural women of Capricornia or the farmers in Longreach when she stands under the tree of knowledge at Barcaldine and explains roll-back? Is she going to roll back the abolition of the assets test? Labor will put that sort of thing at risk. Is she going to roll back the income tax cuts, the diesel fuel reductions, the research and development? What is Labor going to roll back? It is time there were some answers to these questions. The Labor Party has not ruled out any of these options in its roll-back package and it is time that country people got some answers if the Labor Party expects any kind of sympathy and understanding for its proposal. Labor is all about tax increases. No-one believes there will be any roll-back when it comes to taxes.