E&OE..........................................................................................
GIBSON:
John Howard, good morning to you.
PRIME MINISTER:
Good morning Mike, nice to talk to you.
GIBSON:
Nice to talk to you on a foggy morning I understand in Canberra
as you join us on your way to the airport.
PRIME MINISTER:
Indeed, I am flying out of the fog into the light.
GIBSON:
Well we played Roll out the Barrel' because I
guess you did roll out the barrel for us yesterday and now it's
the morning after the night before. How are you feeling?
PRIME MINISTER:
I am feeling very encouraged by the response. This is a long-term
plan to make the Australian economy stronger because it will make
our exports cheaper. It will allow our businesses to operate more
efficiently and that's got to be good for all of us. The main
reason for this tax reform plan is to further strengthen the Australian
economy. We've got the budget deficit fixed, we have got interest
rates down, we have generated 300,000 new jobs over the last two
and a half years. The next big thing to do to make the Australian
economy stronger and better is to fix the tax system and that's
what we believe this plan will do.
GIBSON:
Most of us know the details of your package by now but how long
have you been working on it? When did John Howard first decide that
he wanted to reform the Australian taxation scheme?
PRIME MINISTER:
Oh well I have wanted change in the Australian taxation system
for about 20 years but as Prime Minister I came to the decision
about the middle of last year that we had to commit ourselves to
a long range plan and lay it out in front of the public before the
next election.
GIBSON:
Besides your own team there in Canberra of course, who were some
of the other people you consulted about what you would do. Did you
speak to your wife about what she....
PRIME MINISTER:
I certainly...
GIBSON:
....what a housewife would expect, did you speak to fellow Australians?
PRIME MINISTER:
I did. I have done that all my political life and the message I
got from middle Australia was very simple. They know the present
system needs fundamental change, they want it done in an across
the board but fair way and they want some personal tax cuts so that
people will be reassured that the reform doesn't leave them
worse off. And that really has been the driving force behind the
design of this plan. People deep down know there is something wrong
with the present system and they do accept that it does need to
be changed but they also worry about change and they want to be
reassured along the path of change that they are not going to be
left worse off.
GIBSON:
What do you say to lower income workers who have already been besieging
this radio station this morning with protest that compared to those
in middle to high wage brackets they will be worse off?
PRIME MINISTER:
Well they are not. I mean Mike, if you are now on $20,000 a year
you can see that income rise to $50,000 a year without going into
a higher tax bracket. The uniform tax level, top level for people
between $20,000 and $50,000 a year will only be 30 per cent. It
is now a mixture of 34 per cent and 43 per cent. Those people are
not worse off proportionately, particularly if they have children,
they are the best-rewarded section of the community.
GIBSON:
What do you say again to those who claim that by directing assistance
so heavily in the direction of single income families that you are
discouraging women from remaining in the workforce, do you want
Australian women back in that kitchen behind that white picket fence?
PRIME MINISTER:
Well that is ridiculous, I don't. All I am doing in that area
is removing some of the tax bias against single income families.
If you have a combined income of $50,000 and that is out of two
incomes, you in aggregate pay less tax than one person on $50,000
because you have the benefit of two tax-free thresholds. And when
a mother or father gives up work when children come along they give
up the whole of that second income. And all I am seeking to do is
have a balance in this area because we are increasing the benefits
for all families with children, not just single income families.
Every child in Australia now will attract an additional tax benefit
for one or another of their parents and we are also making a further
adjustment in favour of single income families to remove that imbalance.
But it is not at the expense of the others. I am for choice about
what people do. I want to say to the parents of Australia: when
you have children, it should be your choice whether mum or dad stays
at home when the children are young and look after them. It should
be your choice at what stage the parent at home returns to the part-time
workforce and then to the full-time workforce, it should be a matter
of choice. And there are thousands and thousands of parents who
want greater choice in that area, they don't want the Government
to tell them whether they should be a single income or a two income
family. But I am not about sending people back to the kitchen or
the 1950s, I am about giving the men and women in Australia in the
1990s greater choice in relation to the caring arrangements for
their children. And that's just a piece of propaganda designed
to discredit the package, I am in favour of justice and choice.
I am not in favour of stereotypes for women.
GIBSON:
I know you are racing to get that plane and I might put one more
to you if I can Mr Howard. What promise can you make that the game
plan won't change if we re-elect you now? Are these tax cuts
and all the other goodies you are offering us today, are they in
the words of your predecessor L-A-W?
PRIME MINISTER:
Well we will put them all through after the election if we get
elected and we can't put it through before the election because
the Opposition has said it's against it and we won't get
it through the Senate. But, of course, the plan will remain. This
will be the major issue in the election campaign, it won't
be the only issue, but it will be the major issue and, of course,
it is a very attractive plan. It has got a tax rebate for private
health insurance. Anybody will be able to get back 30 per cent of
the cost of their private health insurance and that is going to
boost support for the health system. But it's a plan that we
are committed to, we are going to deliver. We will be saying to
the Australian public, whenever the election is, we would like your
support in both the House of Representatives and the Senate because
this is more than just a tax cut. It's more than a GST, it's
more than a health insurance rebate. It's more than a reduction
in the cost of diesel fuel. It is an overall plan to make Australia
stronger and better and better able to withstand the impact of what
is happening in Asia. And that is why it is so important to the
future of our country.
GIBSON:
Well thank you for joining us this morning and I know as the fog
lifts over Canberra you trust that the fog is now about to lift
over the Australian taxation system after many years. Have a safe
flight.
PRIME MINISTER:
Thank you very much Mike.
[ENDS]