Tax concessions and election disclosure
Kelly asks whether the Government made clear before the election that tax concessions could change if pay-agreement guidelines were not respected. The Minister says policy assumed a pay rise of around 5%, that larger increases could be accepted without tax adjustment, and that he does not believe voters were misled.
In relation to the Minister's main reply when he spoke about the appeals for wage restraint and the crucial relationship between wage restraint and economic development, which are commonplace under all Governments, he did say that policies or tax concessions could not remain unchanged.
Comment on this
I am trying to cast in one question what would otherwise take three or four, but the Chair is limiting me to one. The Minister said that these tax concession policies could not remain unchanged unless the guidelines of the pay agreement were respected. I ask the Minister whether that condition was made plain to the people by his party before the election?
Comment on this
So far as I know we said that our policies were formulated on the basis of a pay rise in the region of 5 per cent.
Comment on this
I will go further and point out that we are saying that we will accept a greater increase in pay rates without adjustment of taxation. It is as obvious as night follows day that no Government could allow their policies to remain unchanged if there were any substantial development in the economy, be it from pay rises, from external price rises or from any action.
Comment on this
We know it is obvious. It was not obvious when the Minister was canvassing for votes.