Subjects: GST
E&O.......
PRIME MINISTER:
[tape begins here] ? has been very positive. You've heard what Coles have said and Woolworths have said, you can make up your mind on their assessments but they report it's gone smoothly. I have spoken I suppose to 20 small traders and all of them have said they were ready and it's going okay. I've spoken to a lot of shoppers both here and in Top Ryde and their reaction so far is quite positive.
Now I don't pretend that there won't be some challenges there won't be some teething troubles and I ask people to give it more time. I don't jump to any conclusions on the basis of the reaction so far. But Mr Beazley said today was going to be a day of ruin and disaster and chaos. I certainly don't find it here and I've gone out and mixed with people and talked to them. I think he's having a news conference in the caucus room in the arid, deserted atmosphere of Canberra on a Saturday morning.
JOURNALIST:
Mr Howard is this also the first day Australia's black economy is brought to account?
PRIME MINISTER:
Well you should always be careful Phillip of making grandiose claims about the black economy. I believe that the GST will reduce, tax reform will reduce the black economy, it won't wipe it out completely. But to the extent that it does reduce it that's good news for you and your viewers because you've been paying your taxes and doing the right thing by Australia. And if we could get more people to do that then we all benefit. And that is one of the beneficial long term benefits of tax reform- we get more people shouldering their part of the burden, doing their bit. I mean I want everybody to pay their fair share, no more. And if you can get people all over the country paying their fair share now that's very good.
JOURNALIST:
If you raise more money from the GST than you expect, more than that $24 billion. Does that money also go to the states?
PRIME MINISTER:
Well all of the GST revenue goes to the states, income and company tax revenue goes to the Commonwealth. And tax reform might have a beneficial impact through cutting the black economy on income tax and company tax collections. But I'm not making any claims about that. It's too early. I don't know. This is only the first day of the new system and we really have to wait and see but we think that it will help but I'm not making any outlandish claims.
JOURNALIST:
Sir, in your political life can you rank what's happened today as far as where it sits?
PRIME MINISTER:
Well it's certainly up there in the forefront. I of course have some time to go in politics and I don't know what lies ahead but I certainly believe that tax reform is something that this country has needed for a generation and I hope that it goes well. I ask the Australian people to give it a fair go and I believe that if they do give it a fair go then it will be seen as something very positive for our future.
And remember that in the days ahead people are going to get income tax cuts. This is the first day. In the days ahead as people get their pay packets they will be bigger and they will have more disposable income and they'll get higher family benefits. Now all of that is very good news for Australians and Australian families.
Now this has been difficult, it's been a risk, it's been tough. I've copped a lot of flack, I'll cop more flack as the days go by. I understand that but I've always believed that you've got to do things in public life that are good for the country and take the risks. And I've got a lot of confidence in the Australian people- they'll make the right judgement. If this thing is as fair as I believe it is they'll support it. If it's not then I'll pay the price for that. And I've always accepted that.
JOURNALIST:
Prime Minister many of those same small businesses talked this morning of compliance costs well exceeding the $200 Government grants. Some talked in several thousand dollars extra. These are the very people who supported you in 1996/98. What's your thoughts on their compliance costs?
PRIME MINISTER:
Well, it will depend from case to case and I think you just have to wait and see it all being worked out. I mean look you make a judgement about something and you try and do the best thing you can. And I have given a lot of thought to this plan. I think it's the right balance, it's the right thing and we'll see as things work out over the months ahead. I don't think you'll be able to make a final judgement for six months. I don't think it's too early to make a judgement in a few days or a few weeks.
But you can make one judgement and that is today's not a day of chaos and ruin and disaster that Mr Beazley predicted. I mean Mr Beazley has run the most negative, narky disinformation campaign I've heard in years from an Opposition Leader. He wanted today to be a disaster. He wanted today to be confusion. He wanted today to be chaos. And it's to his great discredit that he tried to talk this reform down. Now it's not a day of disaster. It's not a day of confusion. And he ought to be reminded again and again of how that prediction has turned out to be so utterly and completely wrong. He ought to get out into the shopping centres of Australia and talk to the people and find out what they think instead of trying to talk Australia's future down.
Thank you.
[ends]