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Transcript of interview with Leon Byner: Radio 5 AA: 16 July 2012



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E&OE………………………………………………………………………………………

LEON BYNER:

Joe Hockey, you are the Shadow Treasurer, can you fathom how that works?

JOE HOCKEY:

Good morning Leon. I can fathom how it works because this is a tax on energy. The carbon tax is a tax on energy. The more energy you use in your daily life, the more tax you are going to end up paying. It is as simple as that. The failure of the government is in its failure to understand there are varying levels of energy usage in peoples everyday life, for example, the more time people may spend going to the fridge, means the more time they are opening and shutting the fridge, therefore they are using more energy, therefore it is going to be more carbon tax, as opposed to someone who may have a more basic lifestyle. It varies according to energy usage levels but the suggestion that somehow that the GST will not apply to the carbon tax is complete hogwash from an incompetent government.

LEON BYNER:

Tell us why. Why is it hogwash?

JOE HOCKEY:

What happens is the 250 companies that are actually being charged the carbon tax are going to build this massive tax - raising over $8 billion a year - they are going to pass it on in their costs. That is the whole idea behind it, what that does, particularly for electricity generators is, as we all know, means higher electricity bills. When they pass it on, the GST applies after the final price is determined. The final price of the product is X, or say $1, and then they are going to apply the GST after that. Any inbuilt costs, including the cost of the carbon tax, including the everyday costs of big business like payroll tax, of course they are going to be part of the original components and therefore there is going to be increased GST collected by the federal government.

LEON BYNER:

So you think their claim that there will be no GST on the carbon tax is just false?

JOE HOCKEY:

It is completely false, because what they are suggesting is the federal government is going to charge GST, when it charges these 250 businesses - of course it is not going to do that because it doesn’t do that, but what happens is those companies embed the carbon tax into their prices and everyday cost of living is going to go up, and the GST is on top of all that.

LEON BYNER:

Right Joe, thank you for explaining it.

Radio 5AA - Leon Byner Monday, 16 July 2012 Errors and Omissions Excepted

Page 1 of 2 Radio 5AA - Leon Byner | Media | The Hon. Joe Hockey MP

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Page 2 of 2 Radio 5AA - Leon Byner | Media | The Hon. Joe Hockey MP

2/09/2013 http://www.joehockey.com/media/transcripts/details.aspx?s=359