The Coalition is facing a tough stretch in the polls, so it’s fighting back with a new strategy to win over everyday Australians. Angus Taylor has unveiled a new policy document titled Our Plan, focused on cutting taxes, capping migration and scrapping net zero. Joining us now to break down what that means for Queenslanders is LNP Senator Paul Scarr. Thank you so much for joining us, Senator.
Senator Paul Scarr:
Thanks for the invitation, Carla. And what a beautiful part of the world. Where else would you want to be? At this hotel, in Queensland, it’s such a great spot. I think we’re in the best position here, overlooking Bribie Island at the Sandstone Point Hotel.
Carla:
Listen, I want to ask about this plan unveiled by Angus Taylor yesterday.
What exactly is the plan, and why should Queenslanders care?
Senator Paul Scarr:
Well, I think Queenslanders do care. Since the budget was brought down, I’ve been travelling around Queensland talking to people and there is a lot of concern about the taxes introduced in the budget and the impact they’ll have on small business, young people and housing supply.
So I think this plan is being released by Angus at exactly the right time.
One of the key elements is reversing those tax changes announced in the budget, including changes to capital gains tax, negative gearing and the taxation of discretionary trusts.
There are around 800,000 small businesses across Australia that use discretionary trusts, and they’ve been using them for decades. Every one of those businesses will now need accounting advice, may have to change their business structures, and alter the way they operate.
That’s simply not good enough, and there’s a lot of concern in the community.
Carla:
When people talk about “loopholes”, a lot of the time they’re talking about structures that families, farmers and small businesses have used for generations to set themselves up and run their businesses.
Many people are now in limbo because they’ll need advice on what to do next.
Senator Paul Scarr:
Exactly. The accounting profession says tens of millions of dollars will need to be spent on valuations, restructuring and compliance. From my perspective, that’s happening at the worst possible time, when everyone is already doing it tough.
Carla:
Does the plan outline how businesses will be better off under a Coalition government?
Looking at the polls, the numbers are undeniably against the Coalition at the moment, with the LNP lagging behind and One Nation on the rise.
Is this a plan that has Australia’s future firmly in its sights and outlines the kind of prosperous country we want to be?
Senator Paul Scarr:
Absolutely.
At a fundamental level, there’s a difference in philosophy between Labor and the Coalition. The Coalition wants to reward people who take risks, start businesses, employ people and want to get ahead.
The government is punishing them.
We’ve already spoken about reversing those tax changes.
We also want to introduce a $50,000 instant asset write-off for small businesses. If a small business buys an asset to help it operate, we want it to be able to write off that expense in the financial year it is incurred.
We also want to reduce regulation.
Everywhere I go, small businesses are raising concerns about red tape. Our National Construction Code is over 2,000 pages long. That’s just madness.
We need to make it easier to own and operate a business, not harder.
Carla:
Australians want something tangible. They want to see a brighter future because, at the moment, many feel things are getting bleaker.
Senator Paul Scarr:
Absolutely.
If you change the tax system and provide people with incentives, you can create confidence and economic growth.
Another proposal Angus has put forward is the automatic indexation of income tax thresholds.
At the moment, when inflation rises, people can be pushed into higher tax brackets and end up paying more tax. Those thresholds should automatically adjust with inflation so that people aren’t unfairly taxed simply because prices are rising.
I think that’s another strong and positive proposal.
Carla:
Particularly for people on lower incomes.
Senator Paul Scarr:
Absolutely.
Carla:
The Labor National Conference is taking place this weekend. What are your major concerns about the direction the Albanese Government is taking?
Senator Paul Scarr:
It comes back to that issue of making life harder for those who are taking risks, starting businesses and employing people.
The government continues to increase taxes and regulation.
There’s also talk of a gas tax at the National Conference.
Having worked in the resources and mining sectors, I know companies looking to invest in Australia have alternatives. They can invest in South America, Canada or Africa.
When they see these proposed changes, they ask whether Australia is still an attractive place to invest. That concerns me greatly.
Carla:
The changes announced in the May budget already make Australia look less attractive for investment.
And if a gas tax is introduced, it won’t just affect the industry. It could flow through to household energy bills, which is a major concern for families.
Senator Paul Scarr:
Absolutely.
I’ve even had diplomatic representatives raise concerns with me. Their companies invested billions of dollars in Australia on the understanding that the tax treatment of those investments would remain stable.
You can’t move the goalposts after the game has started.
Investors make decisions based on expectations, and changing the rules after they’ve invested damages confidence.
Carla:
You don’t need to be a large gas corporation to understand that concern. Property investors and many everyday Australians are also worried about changes to capital gains tax and other investment settings.
Very quickly, Pauline Hanson made headlines yesterday after comments she made on 4BC, saying domestic violence is a “two-way street”.
What are your thoughts on those comments, and what is the LNP doing when it comes to addressing domestic violence?
Senator Paul Scarr:
There isn’t an easy answer.
I think Senator Hanson’s choice of words was incredibly unfortunate.
We know domestic violence is a complex issue. People experiencing domestic violence face significant barriers to leaving those situations, including financial pressures, housing shortages and coercive control, particularly where children are involved.
One of the most important things we can do is ensure frontline organisations have adequate resources.
Groups such as the Women’s Legal Service, community organisations and churches do incredible work.
We need to make sure they’re properly funded so people can access help and find safety.
Carla:
The proposal for a royal commission into domestic violence has again been raised, but Prime Minister Anthony Albanese has pushed back on the idea.
Is he right to suggest a royal commission may not be necessary?
Senator Paul Scarr:
One issue with royal commissions is that they cost hundreds of millions of dollars and take a great deal of time.
There is certainly a place for royal commissions in some circumstances.
However, a lot of work has already been done in this area, and I question whether those hundreds of millions of dollars would be better spent supporting frontline services and assisting families in crisis.
Carla:
Where to from here, Paul? What’s next on your agenda?
Senator Paul Scarr:
We’ve got Angus’s plan now released, and I think it’s an excellent framework.
The next election is still some time away, so we need to spend time travelling around Queensland, talking to people and listening to their concerns.
That’s what I’ve been doing since Parliament rose for the winter recess.
I’ve been talking to veterans concerned about the government’s proposed $5,000 cap on allied health payments. Around 25,000 veterans each year exceed that amount and are concerned about how the system will work.
I’ve also been hearing concerns about aircraft noise, particularly as Brisbane Airport releases new plans.
There are a range of issues out there.
Carla:
You’re certainly covering a lot of ground.
Senator Paul Scarr:
Well, I’m a senator for all of Queensland, so that’s exactly what I signed up to do.
The best part of the job is meeting people who are doing great things in their communities.
Carla:
Well, get out and enjoy Sandstone Point Hotel. There are plenty of people here enjoying themselves and keen to hear your views on how life can improve for Queenslanders.
Paul Scarr, thank you for your time.
Senator Paul Scarr:
Thanks, Carla. And good on 4BC for getting out into the community and talking directly with Queenslanders.
Carla:
It’s certainly not a tough assignment when you’re broadcasting from somewhere as beautiful as this.
That’s Senator Paul Scarr, LNP Senator for Queensland.
