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Speech to 50th annual conference of the National Party of Australia



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EXTRACT C ” SPEECH BY THE LEADER OF THE NATIONAL PARTY, IAN SINCLAIR, AT THE 50TH ANNUAL CONFERENCE OF THE NATIONAL PARTY OF AUSTRALIA - QUEENSLAND, SHERATON HOTEL, BRISBANE, FRIDAY 14 JUNE 1985

News editors: note pages 14 and 15 on fuel p r i c e s .

10/

It is in this climate that Australia approaches the July )

tax summit.

Labor * s preferred position is to impose two new ta x e s : a capital

gains tax embracing death duties and gift duties, and a

broad-based consumption tax.

No taxes are to be eliminated.

Government expenditure c uts, the Treasurer has confirmed,

are not up for discussion.

Gone are many alternate worthwhile reforms -- such as .

Queensland's flat tax proposal — from any consideration.

Spawned in all revealing financial discussions with the A C T U ,

nurtured so that big business might survive with them, Labor's

tax proposals are lethal to small businessman everywhere.

The capital gains tax will hit the family business particularly

in the rural sector.

The broad-based consumption tax on fuel alone will add at least

six cents a litre to already excessive fuel prices.

Regional and rural dwe H e r e will pay their consumption tax on

this augmented freight component.

How inequitable it all is!

11./. . .

The K eating p a c k a g e also me a nr. o t h e r s i g n i f i c a n t c o n c e s s i o n s

for e xample those for soil and wa ter c o n s e r v a t i o n an d p e t r o l e u m

e x p l o r a t i o n arc to be eliminated.

A n o m a l i e s aboun d. S u p e r a n n u a t i o n by a s e l f - e m p l o y e d per s o n

r emains d e d u c t i b l e w h i l e e m p l o y e r and e m p l o y e e s u p e r a n n u a t i o n

c o n t r i b u t i o n s are not.

No Mem b e r of the F e d e r a l N a t i o n a l Par ty was i n v i t e d to the

tax s u m m i t .

But wc b e l i e v e the very format of the Ju ly 1 tax s u m m i t de ni es

w o r t h w h i l e c o n s i d e r a t i o n of a l t e r n a t i v e tax p r o p o s a l s .

It is a d e v i c e d e s i g n e d to di sguise from the v a s t m a j o r i t y of

A u s t r a l i a n s the i l l e g i t i m a c y of the fax p a c k a g e .

What is there ,i.n the sum mit pac k a g e to a s s i s t Stat e and I.ocal

G o v e r n m e n t s in t heir r e s p o n s i b i l i t i e s ?

W h a t is there to a s s i s t the p r o d u c t i v e i n d u s t r i e s ?

The N a t i o n a l Party s t r o n g l y supp ort s tax reform. It. does not

su p p o r t the K eating package. '

The tax syst e m shou l d be simpler and w i t h i n the; p u b l i c ' s

ab i l i t y to p a y .

We have s t r essed that there ca nnot be a real cut. in ov e r a l l

t a x ation until g o v e r n m e n t sp ending i r> cut.

12/. . .

The c urrent tax d e b a t e is re ally on ly about, c h a n g i n g the

mi x Of ts»es.

Even a s s u m i n g that the H a wke G o v e r n m e n t k eeps its p r o m i s e s on

the " t r i l o g y " , g o v e r n m e n t spending, t a x a t i o n and g o v e r n m e n t

debt will all increase s u b s t a n t i a l l y in w h a t is left of its

cur r e n t t e r m . ■ ,

The total tax bur d e n will not be eased, and one of the

cent ral p r o b l e m s in our e c o n o m y , the s i zo oJ" G o v ernment,

will be untouched.

The p o s s i b l e retu r n of the tax power to the S t ates is not

m e n t i o n e d .

The National. Party has not, and 1 d o ubt if it ev er will,

change its v i e w s on capital gains tax.

Such attacks would strike at- the heart: of farming and small

business. It w ould be costly, c o m p l e x and a general brake on

e c o n o m i c a c t i v i t y and enterprise.

The fact that it includes do facto death and gi ft du ties just,

incre ases our r e v u l s i o n .

W h a t - L a b o r has done with this tax amou n t s to bribing the ACTU

and sending the bill to the farmer and small businessman.

This two- c a r d trick w o u l d n ' t pass m u s t e r in oven the roughest

of gambling circles.

j f Labor' s capita l gains tax .should become law, it wj 11 be

short lived.

On the return of the Coalition Government, it will go the same

way as labor's, assets tent — out the window. -

Another major concern to the National party is the

affect of the p r o p o n e d 12.5 per ce nt c o n s u m p t i o n tax on prices,

p a r l i c u l a r l y fuel prices.

It will be a really bitter blow for the rural sector. Moreover

there are no plans for any rebate on this tax tor fuel used

on-farm.

Reme m b e r Mr H a w ke's 1903 o l e c t i o n p r o m i s e that Labor w ould cut

fuel by 3 cents a litre? H o w h o l l o w t ha V . prom i s e now sounds.

All A u s t r a l i a n s know what has h a p p e n e d to fuel prices.

A fter 26 m o n t h s in office. Labor had i n c r e a s e d petr o l p r ices by

more than 10 cents' a l i t r e - -- or r o u g h l y 25 per cent.

Now a further increase is on the way.

.Well, it's just got to stop.

A u s t r a l i a n s are sending out a clear signal on f u el.price

rises -- they've had enough.

It's a vital issue for bur Party.

Μ Λ

Your Federal National Party Parli a m e n t a r y Mein born and Senators

support a major r e v i e w of A u s t r a l i a ' s oil p r i c i n g policies.

Our o b j e c t i v e is to bring about a real tall in fuel price»,

for al] c o n s u m e r s . We r e c o g n i s e t h a I : A u s t r a l i a n oil p r o d u c e r s

and e x p l o r e r s need to get the world price for their p r o d u c t --

if they don't, our s e l f - s u f f i c i e n c y in p e t r o l e u m fuels will

rapidly drop to d a n g e r o u s levels . .

’ So we support the freeing of tbe mark e t for etude oil.

The p r o b l e m is that fuel costs have be come .loaded up w i t h a

range of Government, taxes. .

We b e l i e v e that G o v e r n m e n t s must make a c o n c e r t e d effort, to

reduce their d e p e n d e n c e on oil os a so urce of revenue.

We will t h e r e f o r e support!

. a r e v i e w of existing w e l l - h e a d tax a r r a n g e m e n t s

. abol i t i o n of the indexation of taxes on fuel

. removal' of the gap ho t.weon fuel ex cise and the excise

rebate a v a i l a b l e for o f f - r o a d di esel use .

. e x e m p t i o n of the fishing industry from the A u s t r a l i a n

. Bicentennial. Road D e v e l o p m e n t P r o g r a m levy

. and the d e v e l o p m e n t of an e q u i t a b l e r e p l a c e m e n t for the fuel

freight e q u a l i s a t i o n scheme.

At the same t i m e , we will seek a c o m m i t m e n t fr om the St ates that

they wi.l 1 not step in and raise State taxes when the C o m m o n w e a l t h

burden is lowered.

L 5/ . . .

Mr Fre.->-.dent.. .

Australians want straight, clear and trustworthy leadership

from their politicians.

That is what the Queensland National Party is giving them.

That is what: federal I y the National Party offers them . .

All Australians should understand that, the next Coalition

Government, will be very different from the last.

It will have a very difficult focus and direction. -

Anyone who doubts that will, be in for a shock in the months

after the next: election. .

To put Australia on the course it must take, we need your

help and your support and I am confident we have it.

I congratulate the National Party in Queensland on .its

Golden Jubilee conference - - and I wish you all the best, for

the next half century of National Party leadership in this

great State. : - "