Senator GIBSON —My question without notice is to the Assistant Treasurer, Senator Kemp. Will the Assistant Treasurer inform the Senate about comments made by the Secretary-General of the OECD, Mr Donald Johnston, regarding the Australian economy and the government's taxation reform proposals?

Senator KEMP (Assistant Treasurer) —Thank you for that question, Senator. It is a very important question and a most interesting question. On his current visit to Australia, the OECD's Secretary-General, Mr Donald Johnston, made some very favourable comments regarding the Australia economy and the economic management of this economy. He said:

Australia's performance has been remarkably good. There has been strong domestic demand. It has far exceeded expectations.

He was asked by a reporter if the success can be attributed to government policies. He replied:

Well, they are absolutely fundamental to it. You can't have this kind of economic performance without good governance.

How right he is. The coalition made a commitment in the 1996 election and reaffirmed in the 1998 election it would provide good, strong, sensible government. This is what we have done by introducing a simpler, fairer and modern personal and indirect taxation system which will come into effect on 1 July 2000, combined with massive personal income tax cuts. With these personal tax cuts, many families will see an extra $40 to $50 a week in their pay packets.

Mr Johnston of the OECD further warns—an interesting warning—that complacency could be the greatest enemy of all. We agree with him. That is why the government are continuing to push forward with their major reform agenda. The next aspect of this reform agenda is the business tax system.

In the review of business taxation, we will give Australia a company tax rate that is internationally competitive at 30 per cent—lower than Canada, Japan, the USA and many other of our major trading partners. We will cut capital gains tax and introduce rollover relief for scrip for scrip takeovers, remembering of course that 77 per cent of taxpayers paying capital gains tax earn under $50,000. Mr Johnston commented on this issue too, saying:

Countries have to strike a balance between tax on capital, consumption and income. I think Australia's proposals are trying to achieve that balance.

In short, the government's plans to reform business taxation in Australia will create an environment for achieving higher growth in the economy, improved savings and more jobs. We note that since March 1996 more than half a million new jobs have been created in this economy.

Senator GIBSON —Madam President, I ask a supplementary question. Minister, would you advise the Senate if there have been any further comments regarding our good economic position?

Senator KEMP (Assistant Treasurer) —There do happen to be some further comments which I think it would be of interest to the people in the Senate to learn about. In today's Adelaide Advertiser , I notice that a seminar in Adelaide yesterday—

Opposition senators interjecting—

The PRESIDENT —Order! The level of noise in the chamber in unacceptably high.

Senator KEMP —As I was saying, in today's Adelaide Advertiser a KPMG executive has heaped glowing praise on the Ralph report. In fact, it was described as being a huge stride in the right direction. Further, it was reported:

`The proposals would benefit business primarily through lower corporate tax and reforms for small business,' Mr David Sharp of KPMG said.

At an Ord Minnett seminar, also in Adelaide, the message was that business tax reform was likely to deliver more incentives to work, save and invest. Once again, the heat is on the Labor Party on business tax—(Time expired)