Senator GEORGE CAMPBELL (2:00 PM) —My question is to the Assistant Treasurer. How does the minister respond to Stephen Harris, CEO of the Institute of Chartered Accountants in Australia, whose comments in the Australian Financial Review on 22 August 2001 were highly critical of the way in which the government forced tax reform upon Australian business? Isn't Mr Harris correct when he states:

Can the minister confirm that this is a view expressed by the CEO of the same institute the government often likes to hold up as being an independent voice on tax reform? How can Mr Harris's views be ignored?

Senator KEMP (Assistant Treasurer) —The government has delivered arguably the most substantial tax reform since Federation. The objectives of tax reform were to create a more competitive tax system. I think that has certainly happened, among other things. Senator Campbell, let me outline some of the key objectives of tax reform. One was to deliver substantial cuts in personal income tax—$12 billion of tax cuts. Promised and delivered. Another key reform in the package was to cut the corporate tax from Labor's 36 per cent to 30 per cent. Promised and delivered. Another area was to cut the plethora of indirect taxes and to abolish Labor's unfair wholesale sales tax. Promised and delivered. Another element was to provide for the states a guaranteed growth tax. As Senator Campbell would know, all of the revenue from the GST goes to state governments. It goes to Mr Carr, Mr Bracks, Mr Beattie, Dr Gallop and so on. The Labor premiers obtain the GST revenue, and not one of them has complained about it—not one. A key element of the reform was to give a growth tax to the states. Promised and delivered.

Another key element or objective of tax reform—you asked me about the objectives of tax reform—was to take the taxes off exports. Promised and delivered. One of the reasons why Senator Campbell should be pleased with what has happened with tax reform is that, in this very uncertain environment we now find ourselves in, to have a very competitive export sector has been a great boon to the Australian economy, particularly to rural and regional Australia. The commitment in relation to the export sector was promised and delivered. Senator, you should look across the spectrum and note that this government's objectives in tax reform have been delivered.

You raised a number of other issues. I think your question indicated that you felt that the issue had been rushed through the parliament. The parliamentary process took a long time, not a short time. There was no rushing of bills through the parliament. In fact, I think everyone would agree that in the process of bringing about tax reform the Senate spent an absolutely inordinate amount of time on this issue. We had three or four committees investigating various aspects of the bill. The total sitting time of those committees was in the order of a year if you add them together. I do not think there was any rushing of the legislation through the parliament.

Let me now turn to the compliance issue. This government is always very mindful of the need to keep down compliance costs. We are one government that is always prepared to work—particularly with small business—to cut back on compliance costs. There were issues raised by small business in relation to compliance costs, particularly in relation to BAS— (Time expired)

Senator GEORGE CAMPBELL —Madam President, I ask a supplementary question. In light of Mr Harris's highly critical comments, can the minister confirm that Minister Macfarlane's media release of 24 September featured nothing to alleviate the substantial GST compliance burden on small businesses despite the admission in Mr Macfarlane's leaked cabinet submission that the government needed to do more? Can the minister deny that this means that small business has nothing more to look forward to on that front, in contrast with Labor's proposal to substantially simplify the BAS by offering a ratio method alternative to burdensome BAS calculations?

Senator KEMP (Assistant Treasurer) —There is one thing that small business are worried about—the possible election of a Labor government. The Labor Party is not the party of small business; the Labor Party is the party of the trade union bosses. About that there can be no argument. Senator George Campbell mentioned the package that was announced by Mr Macfarlane recently. Let me quote from the Australian Chamber of Commerce and Industry. ACCI stated that it supports the major initiatives in the package. In contrast to the Labor Party, business supports the package. The Sydney Morning Herald today announced that the $22 million unveiled by the Howard government yesterday will liberate small business from red tape. The Labor Party is running a political line, and why wouldn't it run a political line given the state— (Time expired)