PRIME MINISTER:
Welcome, everybody. I want to thank the leaders of the states and territories and of course the President of the Local Government Association for a very good discussion. It was a very good and cooperative, congenial discussion today over many issues and we've reached agreement on some very important priorities.
I might deal first with the issues of national security.
As you know, since COAG last met there have been very serious terrorist incidents both abroad and of course closer to home. We've seen some operations in Sydney just this week.
We have agreed, following a very - I thought - incisive and helpful presentation from the Director-General of ASIO, we've agreed to prioritise the work that NSW has been leading to develop nationally consistent legislation on pre-charge detention. That's consistent with the recommendations of the Australia-New Zealand counterterrorism committee.
As many of you would be aware, there are some constitutional impediments to the Commonwealth Government legislating for pre-charge detention of the period that our security services believe is necessary or is appropriate and of course the States don't have those limitations and we'll be working together collaboratively to do that. And I want to thank the State leaders for that work.
We've also agreed - and I thank the leaders for agreeing with a proposal I brought to them this week - to develop a nationally consistent post-sentence preventative detention scheme which would enable a continuing period of imprisonment for high-risk terrorist offenders.
This would be consistent with the arrangements that apply in a number of jurisdictions for sex offenders and for extremely violent individuals, so this is a court supervised process, it's well understood by the law and indeed its constitutionality has been dealt with, as the Queensland Premier knows, in a case that arose from her State.
We've also agreed to, on a National Ice Action Strategy. Ice is a scourge, we understand that. Its prevalence is shocking and you would have seen a recent announcement for the Commonwealth's part of a $300 million series of programs to tackle the ice scourge and again, following the work of the task force led by Ken Lay, we have seen the States and Territories coming together on that.
Another issue where there has been complete agreement and solidarity is preventing violence against women and children. All leaders are committed, as I believe all Australians are, to preventing violence against women and children and we acknowledged in our discussions the great leadership of Rosie Batty, the Australian of the Year, and again the considerable assistance that we've had from her and of course also from Ken Lay.
So we've agreed to a range of measures that are going to be uniform across the country to ensure that interventions, court interventions against perpetrators, are effective right around the country.
We've agreed on actions to limit abuse that's done via smartphones, over the Internet and so forth. We're going to have a consistent domestic violence order scheme and we have also agreed - and I thank the Queensland Premier for recommending this - we've agreed to have a national summit on this issue in the last quarter of 2016 and that will - we will then have had enough experience of the measures we're all putting in place to be able to review them.
I'm sure Adam will speak about this also but we've agreed on a new strategic framework that puts Indigenous economic participation at the heart of the national agenda and that is absolutely critical.
We recognise - as in the Chief Minister's words - this is not just a social issue, this is an economic issue and we need to prioritise our economic advancement, economic participation by Indigenous Australians.
Can I turn now to the issues of the Federation and economic reform? We've recognised - we've had a good discussion about the challenges, our shared challenges, of the cost, the growing cost of health services in Australia. It is a big agenda, it covers all jurisdictions and of course the relationships are very complex.
Now we've agreed to continue investigating a full range of Commonwealth and State tax and revenue-sharing options. We've reiterated our commitment to changes to the tax system being fair with a growth-enhancing tax mix and base and we have all reiterated our commitment to keeping tax as low as possible.
We acknowledge there are very significant budgetary pressures and we all recognise that the solutions lie in more efficient delivery of Government services, particularly in the health sector which was the main focus of the discussion so efficiency is very important but clearly we also need to address a better tax mix as part of the overall solution.
Finally, can I say that all of us were absolutely of the same mind in the objective of ensuring that Australia, post the mining boom, remains and becomes even more of an innovative, competitive, productive economy with more and better jobs for all Australians. Bigger and brighter opportunities for Australian businesses and we recognise that the way to do that is through strong economic growth, driving jobs, fueled by innovation.
There is a common commitment to that.
I think we're all committed to the ideas boom and we recognise that each and every one of us are part of the solution. We have part of a common responsibility, a shared responsibility, for ensuring that Australia's - ensuring Australia's strong economic growth.
We'll be doing more work on these issues I've just talked about, the economic and Federalism issues, and we'll be meeting again in March. The aim there in the March meeting it is going to be a meeting where we'll not simply consider the work we've done but we will, so far as is possible - and obviously we have to reach agreement - but our aim is to take action in March when we have had a further opportunity to discuss the many issues and approaches that have been canvassed around what I have found as the new person at the COAG table, I've found an extremely constructive and helpful discussion and I want to thank all the other leaders for their participation today.
PREMIER BAIRD:
Thanks, Prime Minister.
Well, I agree the Prime Minister - we welcome him obviously to his first COAG, a meeting with obviously the Premiers and Chief Ministers.
It was a good meeting and discussed a range of issues.
Importantly, I think, we have agreed this - and it's a very rare position where all State and Territory leaders will put down the political badge and say what is the number one challenge we are facing?
And it is health. How do we fund health into the long-term? That has been agreed as our big fiscal challenge.
Importantly, we have committed - as the Prime Minister said - to investigating all tax options as a way of addressing this challenge.
We've gone through them before - the GST, the Medicare levy, income tax sharing, together with State tax options and we're committed to doing this together. That's a very important part of it. We must do this together.
Importantly, the efficiency of services remains a focus and we are across a range of issues, committed to delivering these services, particularly health services, as efficiently as we can.
The second point I would point out is that, as the Prime Minister said, we are coming back early in the New Year. And the determination is to do everything we possibly can in terms of the long-term challenges we face, but if we can't get there in the long-term we'll be looking for an interim solution, particularly in relation to funding health.
An interim health funding solution from 1 July, 2017. All of that is what we're aiming for by the time we get to the next meeting.
The final point I'll raise is in relation to the pre-charge detention regime. I want to pay particular thanks, as I'm sure all the Premiers and Chief Ministers do, to those in the Australia-New Zealand counterterrorism committee and all of our forces that go about on a daily basis trying to keep us safe.
We are implementing the recommendations that have come from them in relation to the pre-charge detention regime and I think that's a very important measure and we have responded, as we've seen, to events here in Sydney recently.
This is evolving, this requires a steady and strong action and we're responding on the back of the expert advice. It is obviously very important we do this on a nationally consistent basis and that's what the resolution was today so a very good first meeting.
Thank you, Prime Minister.
PRIME MINISTER:
Thank you. Premier Andrews?
PREMIER ANDREWS:
Thanks very much Prime Minister and I have to agree with Mike it was a very productive discussion and one where we should focus on a couple of very important reforms as far as I’m concerned I’m very pleased of the work that Victoria’s led in partnership with other states and territories around driving down the total number of avoidable admissions into hospital.
So being more effective, more efficient with every precious health dollar, that’s really special. We’ve not had that agreement before and we’ve struck that agreement today. It gives us something to work really intensively over these next two or three months towards designing a system where we don’t quarrel about health funding so much as work together in partnership to deliver better health care.
That is really important, I don’t think we can overstate just how important an agreement that is. The acknowledgement as well that this is our number one challenge and it’s one that each and every one of us must step up and properly respond to. All governments I think that's a really important development today. It certainly is a very new approach, Prime Minister, and I thank you for it.
Just on issues of counter-terrorism, all of us owe a great debt to the members of our State police forces and of course the Australian Federal Police and it's our job, our responsibility, to give them the powers they need and the budgets they need and the propositions around pre-charge preventative detention orders and also using existing laws that cover other criminals to detain for longer periods of time those involved in terrorist related offences.
They are needed and I think we're all as one committed to delivering on that in the national interest and towards a much safer nation. A productive discussion and the health reform, really important. Really important, Prime Minister, and I thank you for it.
PRIME MINISTER:
Annastacia.
PREMIER PALASZCZUK:
Thank you, Prime Minister. Well, once again I join with my counterparts in saying that today was a very constructive meeting and I thank the Prime Minister for the way in which he conducted himself during the meeting as well and welcome to your first COAG meeting.
I think we all recognise that we need to diversify our economy and we know that innovation is going to lead to the jobs of the future and we had a good discussion as well about the importance of STEM, coding, robotics, all of these areas must be addressed in our education system if we are going to prepare our young people for these jobs of the future.
Having said that, the single-most important issue to families out there is the rising cost of health care. There is nothing more important, whether you live in the cities, whether you live out in regional, rural or remote communities, families want to know that they can access good quality health care so I think there's been a broad-ranging acceptance that health is our national - our number one priority that must be addressed and that's why we will come back next year and make a firm decision and what that means is we must see the modelling. The modelling must be presented at that next meeting. There must be a clear path forward about how we are going to address this fundamental issue for families across our nation.
Finally I just want to make some comments about preventing domestic and family violence. This is not just an issue that is confined to one community it stretches across communities. It has a deep, long-lasting impact on people affected and has long-term consequences for children.
And as a nation we must come together and do more and that is why this summit must happen and it needs to happen because so much good work is now happening in our States and Territories and we need to recognise that best practice, bring together the service providers, the people who are dealing with these issues on a day-to-day basis, and Rosie Batty, and we need to be leaders in that field. Bring everybody together, discuss what's working and let's keep it on the national agenda because it's too important and it's something that we all must make a priority.
PRIME MINISTER:
Thank you. Colin.
PREMIER BARNETT:
I think it's been said but obviously everyone agrees health is the issue. Australia's got a very good - one of the world's best health systems but given the rising costs and the new procedures, unless we find more money for health we will not be able to maintain that standard.
The other point I'd make is that apart from what was discussed, particularly over today, the States and the Commonwealth are working on micro economic reform at a public sector level, for example areas like training, early childhood education and so on so we have clear delineation of lines of responsibility and funding responsibility and I think that will prove to be quite important.
PRIME MINISTER:
Thank you. Jay?
PREMIER WEATHERILL:
The single-most important imperative of any Government is to perhaps beyond protecting the personal security of their citizens, meet their health care needs. So there's an expectation that Australian Governments will respond to that imperative and responding to that should be the first call on the nation's finances.
When we talk about the nation's finances here, there are not State dollars and Federal dollars, there are just Australian taxpayers' dollars and these need to be applied to meeting the health care imperatives of the nation and these aren't just things that are nice things to have, things that Governments can decide to do or not to do, these are the demands of ordinary citizens when they go to a hospital.
These are not doors that you can close and simply say, we're full, we don't want you to come in. These are not discretionary expenditures. These are all locked and loaded. We know what they look like.
The Commonwealth knows what it looks like because it funds for private health care insurance sector at about 6 per cent inflation so we have to grapple with the fact that the present Commonwealth-State financial relationship in relation to health care funding is inadequate.
It's a difficult conversation and it's one that we've spent a good part of this year discussing and what we had was a further very important discussion today and a shared commitment that by next March we'll be taking action on this important question and we must act on this question because the burdens are already being experienced by States and Territories but they become even more all-consuming in the years that will actually commence in around 2017.
So what that means for us as a State that is grappling with these questions - without this solution we will have to either cut services, which means closing hospitals - not closing a few beds but closing actual hospitals - that's the size of the health care funding crisis that needs to be addressed in these discussions and that's why it's a priority for all of us and that's why we've made it the number one issue for all of the States and Territories and I must say it was - it's very - for us, very positive to hear a Prime Minister talking about a shared responsibility to address this question.
That doesn't mean there aren't difficult questions ahead of us, of course these are difficult questions. As a South Australian Government, we have been prepared to contemplate some very difficult things that we perhaps wouldn't have liked to have had put on the national agenda and we've had to accept the criticism that's come with that but the size of the people that are worried about the incidence perhaps of a GST or some other form of revenue measure, just consider for a moment what the effect would be on ordinary working families if they can't get their health care needs met. And so these are incredibly important issues.
PRIME MINISTER:
Thank you. Will?
PREMIER HODGMAN:
Thanks, Prime Minister, colleagues, a day and a half of fairly heavy but very important discussions as we progress our consideration of how we can make our federation work better and it was good to be part of but we've got a lot to do over the coming months and I look forward to March next year when we can put some concrete proposals into action and to deliver.
I agree with my colleagues that health is the most pressing challenge we're facing as jurisdictions but we come with a slightly different perspective. Tasmania's focus is not to increase the tax burden. We believe that the better and more appropriate approach is to ensure that we use this discussion, which also has a very important element of understanding the inefficiencies in our systems, where there's duplication, where there's wastage, to remove those so that we can ensure a more seamless and effective service delivery in health and indeed education and other areas that Government needs to improve its efforts for the benefit of our citizens.
As a State Government, we've taken action to reform our own health system, to improve our Budget situation so that we are better positioned to invest in essential services and I would like us to spend as much time as we can over coming months to also look at way we can increase efficiency, productivity, improve the coordination of State, Commonwealth and indeed Local Governments to improve services including in health.
I want to take the opportunity to also acknowledge significant progress in the campaign to prevent and reduce family violence. Tasmania released an action plan this year which was described by experts as nation-leading. We're still, like every jurisdiction, learning and looking forward to working collaboratively to improve in this regard.
And I also want to acknowledge an important agreement struck between the Tasmanian and New South Wales Governments over the course of this meeting with respect to a better engaging on the use of medicinal cannabis to support those in our community who are suffering a serious illness that might benefit from a safe and effective use of medicinal cannabis to assist them. So, I thank Premier Baird for being part of an exciting new partnership with the Tasmanian Government to progress that.
CHIEF MINISTER GILES:
I wouldn't want to take away from another Territory but I'll jump in.
Prime Minister – congratulations on your first COAG. I think it was a very important meeting from the Territory perspective. A lot of people have spoken about health and health is an enormous problem both on the fiscal point of view but also delivery of services. We're in the middle of building a new hospital at Palmerston in the Top End right now, meeting the needs of growing final burden for both that hospital and also the health industry in the Northern Territory is a challenge.
But I think we've made the right decision today, not rushed ahead with making decisions. We are going to continue to listen to Territorians and to Australians about how we meet that fiscal gap and I think that's important. I look forward to the discussions next year.
We have also had the opportunity of reaffirming COAG's position with yourself as new Prime Minister on statehood for the Northern Territory, working towards 1 July 2018, that's a very important message to Territorians. We've had the opportunity of talking a little bit about the federation reform and I think that will continue a lot more into 2016.
But, particularly, today was a day where you and COAG have made your mark on Indigenous affairs, particularly around indicating the need for the development of a strategic framework for Indigenous economic participation. That is something new in Australian conversation. We often hear about social outcomes, Closing the Gap targets. We don't put enough focus on business and employment opportunities that drive social and cultural change so the decision by COAG today to come back at the next meeting in 2016 with a framework that can acknowledge national principles and priorities but work bilaterally with States and Territories, what we can do to advance economic opportunities for Indigenous Australians I think is first rate in terms of a new initiative for Australia.
We've been doing it in the Northern Territory for the past couple of years, seeing major changes both in the public and private sector and to be able to acknowledge that and seek to advance those collective desires through a strategic framework across the nation and other jurisdictions is really important and it shouldn't go unheralded with your leadership today and all the colleagues around the table. So, thank you very much for that and I look forward to 2016.
PRIME MINISTER:
Thank you. Andrew.
CHIEF MINISTER BARR:
Thank you, Prime Minister.
I think we've learned over the last 48 hours just how hard reform is in this country. We've taken some small but positive steps forward in the last 48 hours. I've attended both the treasurer's meeting and the COAG meeting. I've got to say that – two for one! I'm feeling a little more optimistic about reform as a result of the leaders' meeting than I did emerging out of the treasurer's meeting yesterday.
We've still got some fundamental issues that we have to front up to as a nation and that is that we have a revenue problem as well as an expenditure problem but we're working towards a solution. But clearly everyone has to bring something to the table there.
So, importantly, out of today was recognition from States and Territories as well as the Commonwealth that this is a shared challenge. But it's one that the clock is ticking on and we can't have another meeting like today in March. We have to start making decisions. It's important for Canberra's hospitals, for access to elective surgery, for waiting times in our emergency departments. We will need a decision on this in March to lead into the Budgets that we will all deliver next year.
Just on another matter that I would like to commend the Prime Minister for putting cities at the heart of his Government's agenda for reform and innovation in Australia and as Australia's city-state, the coolest little capital in the world, we are keen to be agile and innovative, to borrow a phrase from the Prime Minister to take advantage of some of the ideas he's put forward, particularly looking at land value uplift, tax increment financing and ways to deliver new infrastructure for cities. And if there could be one place in this country that will be firmly in the reform cart, it's over here in the reformist wing of COAG. I want to acknowledge the Premier of South Australia and I have been reforming taxes, proof again that it can be done in this country and we look forward to this catching on around the rest of the table.
PRIME MINISTER:
Troy – on behalf of the Local Government Association?
TROY PICKARD:
Thank you, Prime Minister.
The Local Government sector welcomes the Prime Minister's focus on economic reform, deregulation, innovation and of course cities and we'll look forward to working collaboratively not only with the Federal Government, but indeed the State and Territory Governments in advancing this important national agenda.
We were pleased to sign up to the National Ice Action Strategy and look forward to working with the State and Territory Governments playing what will be an important role at the local level to help the cause in preventing family violence and also in countering violent extremism.
Thank you.
PRIME MINISTER:
David – yes?
JOURNALIST:
A question on…a very strong message from around the table on health funding. In the communique there's a reference to transition funding around 2017. Is there any scope in transition funding to get more assistance to the States if they're improving the efficiency of their health sectors? You’ve heard their calls – are you open to that?
PRIME MINISTER:
We're open – we certainly are open to, as you've seen in our response to the Harper Review, to supporting and incentivising reform, as Professor Harper recommended. We have carefully used the words, in terms of the March meeting, "consideration and action" and that is certainly our goal but clearly we'll have to find consensus and agreement to have that action. But, yes, we recognise that the health system goes obviously well beyond any one jurisdiction and goes well beyond hospitals, for example. So, all of us, in different ways, have a shared responsibility for the health of all Australians. But what is good at this meeting is that we're recognising that shared responsibility, the States have agreed that their taxes will be part of the discussion, their tax base will be part of the discussion as well – and that's very important. So we're looking at both Federal and State tax bases and we're also looking at the opportunities for, as the Victorian Premier observed, for more efficient delivery of health services which is clearly a very key priority and it's one that I know my colleague Sussan Ley – the Federal Health Minister – is working closely with her State and Territory colleagues on.
JOURNALIST:
So Prime Minister, can I just clarify – is the March deadline if you like is that to reach agreement or otherwise on both tax reform and health funding?
PRIME MINISTER:
The goal is to reach agreement on as much as we can, Phil. The States are sovereign governments under the constitution, so they, we, no-one can force anyone to agree but I think we've had a very good discussion. There isn't yet a consensus on the path forward here and I think in respect it would be fair to say that some of us at least, maybe many of us or most of us, are still working through what we see, what our Governments see as the best approach. But the good thing is that it's been a very – I've found it – a very helpful and constructive discussion and I think we've got a clear common purpose – to promote economic growth, jobs, health, good health, which is part of, underpins our whole economy. We've got a common mission to do that and it's a question of doing it in the most equitable way, both as between the Federal Government and State Government and in the most efficient way.
JOURNALIST:
Prime Minister are you prepared to revisit the savings around the 2014 budget for future health spending as part of this process?
PRIME MINISTER:
I'm - I know that's a key issue with the states, I've heard them on that. I'm really focused on starting from here. We recognise that there are budgets; I think we've described them as budgetary challenges. They're real but rather than going into the history, let's look at the challenge going forward and how we can work together to address it.
JOURNALIST:
Prime Minister, I take it then that we’ll know your tax plans by March so that everyone can reach agreement then on the way forward?
PRIME MINISTER:
Well the aim is to reach as much agreement as we can. I've never been one to let the perfect be the enemy of the good so we'll get as much, we’ll get as much practical agreement as we can. That's certainly my approach.
JOURNALIST:
Just to Sid’s question, will you put your own preferred tax plan to your colleagues here in March?
PRIME MINISTER:
We will be having good discussions in the lead up to March and we'll be exchanging ideas, as we have been to date, but more developed ones and you've got to recognise that March is not very long before the Federal Budget so whatever tax plans we take to the Budget you would imagine would be highly, would be well advanced by March.
JOURNALIST:
Given the timing of the tax reforms, how does that then dovetail into the Northern Territory becoming a state given that the implementations will be around the same time as that 2018 deadline and do you actually support the Northern Territory becoming a state?
PRIME MINISTER:
Well perhaps you should ask the first part of the question to the Chief Minister.
CHIEF MINISTER GILES:
What was the first part of your question?
JOURNALIST:
Given that tax reform is on the agenda and that the one of the impediments to Statehood is about the issue of tax collection and giving the Northern Territory the additional tax collection powers, is this an opportunity to then dovetail that discussion into the Northern Territory becoming a State?
CHIEF MINISTER GILES:
I think that it all works collectively. I think if we, around the table, all work together on a principle or a fiscal policy to try and help solve the health challenge that we all face going ahead, I don't think it matters whether the Territory's a State or otherwise. I think they're two exclusive matters. We'll continue to pursue the Statehood agenda but pursuing what we can, whether it's in March or beyond, fiscally, to help adjust the health issue I think will be a challenge that we move ahead with.
JOURNALIST:
Prime Minister, are you prepared to proceed with a tax reform plan without the support of your state colleagues or is that essential?
PRIME MINISTER:
Can I say the warmth and collegiality around the table was such that I wouldn't - I think it's so unlikely that we won't be able to reach agreement. Look, seriously, there's a lot of good will but ultimately governments, each of our governments, can make decisions within our own frame of reference, if we seek to do so, but I think it is clearly ideal, far better, for the reform agenda, if that's the right term, which I'll just repeat again, none of us are interested in getting economics prizes. We're all focused on the same goal of growth and jobs. We're all focused on the same goal of Australians being as healthy as they can be and getting the health services they need in the most efficient way. So we all want to do that. I believe there’s enough goodwill to be able to reach agreement on that but if there is not then we won't, and then we’ll have to make decisions within our own jurisdictions but I think there is a very - my sense, being a new person to COAG but having - not being unfamiliar to meetings and people with different interests, I think there's a lot of goodwill and a lot of constructive goodwill.
JOURNALIST:
Prime Minister we’ve heard the preferred options from the various premiers in terms of which tax reform option they’d like to take forward, do you have one in mind that you think could sort of be the common ground for everyone here and if I can just ask on a separate one for the Queensland Premier on domestic violence … [Inaudible question]
PRIME MINISTER:
Well why don't you - I‘ve been doing lot of talking. Annastacia, why don't you address domestic violence?
PREMIER PALASZCZUK:
So what’s your question?
JOURNALIST:
[Inaudible question]
PREMIER PALASZCZUK:
I think there was a common agreement that we will have that national summit; that we will look at consistency across the jurisdictions when it comes to domestic violence orders; and there is a lot of good work happening in different States. So what we need to do when we have this summit, is bring the key stakeholders together but also streamline what's working well and what can actually work at a national level. But having said that as well, I think we're in a very unique situation here that we have very strong male premiers and a prime minister that is prepared to take a stand against domestic and family violence and that's what we need. We need very good men out there being role models for younger men coming through and standing up and saying ‘domestic and family violence should not occur,’ and that's why we're taking that next step of having that national summit so we continue the leadership in that area.
JOURNALIST:
Prime Minister, do you have some time, can you give us a timeframe on the post sentence preventative detention scheme? I mean when would you anticipate that the State, or can the states, you know, when's this likely to come in?
PRIME MINISTER:
Well the answer should be - is - as soon as, as soon as possible. It is not a novel area and the reason I proposed it was because it has solid precedent, with respect to different classes of offences, and it's being considered. The principle has been considered and approved or approved as constitutional by the High Court. So we're dealing in any new area of legislation you're obviously dealing with some, you know, you're charting new paths to some extent but this is not entirely unfamiliar territory as I think that all the Premiers would acknowledge. They have laws which deal with offenders of a different kind in a similar way. So I think this is, I think what we need to have is to move on this as quickly as possible and the come back and we may be able to get this done and dusted by March. I don't think it's challenging.
JOURNALIST:
Prime Minister, just going back to my question, what is your preferred option in terms of tax reform going forward?
PRIME MINISTER:
My preferred option, well, there are many different options. There are many different approaches and it is ultimately what we need is a tax system for the 21st century. We need a tax system that does, that has as little of a break on economic activity, so as little of a dead weight loss as the economists would say, on economic activity and that raises the money we need. On the spending side, on the expenditure side, we have to make sure that every taxpayer dollar that is spent, whether it's spent in health or anywhere else, is spent to the maximum effect. So it is we don't want, can't just have dollars, taxpayer dollars chasing spending. There’s got to be, we've got to ensure that we are as efficient in every level of activity, not just to cut costs in a, in a sort mechanistic way but to ensure that we're respecting the contribution the taxpayers are making, compulsorily let’s face it and spending their money to get the greatest effect in this context in health.
JOURNALIST:
Your concerns about GST revenue shares are well documented. The proposal put together by Mr Weatherill will be giving the States a share of a greater income tax and a variation of that. Is that something that appeals to you as perhaps maybe a solution to the ever-running GST wrangle?
PREMIER BARNETT:
What we did agree on that, was that we'd look at all options and, however, I just note that one of the beauties of what John Howard did was not only to introduce a GST and therefore rebalance from direct taxes to indirect taxes, but he also made the GST wholly a front the States, so I think that was good reform but nevertheless, the attitude today was let's put everything on the table and not rule anything in or out but for me the distribution is the elephant in the room.
JOURNALIST:
Just on the terror laws, could I just clarify if all of this happens; would you no longer have to retrospectively strip the citizenship of those who are in jail?
PRIME MINISTER:
Well, you would certainly, as you know, the retrospectively revoking - revoking the citizenship of a person who has been convicted in the past of a terrorism offence, this is a dual national, has been, there have been arguments made by learned authorities that that would hit some trouble in the High Court, it might not be upheld in the High Court.
There have been other equally learned people who have said, it would be. It's clearly an area of some contention.
It obviously also only applies to people who are dual citizens so that's one very significant limitation.
Recognising the obligation I have, as Prime Minister, and we all share, to keep our citizens safe, there is clearly an issue relating to people who have been sentenced to a term of imprisonment for a terrorism offence but at the end of that sentence remain judged to be a very high risk to the community.
Now rather than have what is not a complete solution, which is the citizenship revocation measure that you mentioned, what I have proposed, to the Premiers and Chief Ministers - and I thank them for their support - is building on an existing precedent that we know has been upheld constitutionally with respect to other offences, and applying to a new class of offences, terrorist offences and terrorist offenders.
So in the manner of a common lawyer, I'm moving cautiously and prudently, building from precedent, and I think this is an area where we can build a satisfactory set of measures.
Our job, as I think everyone has said, is to give the police and ASIO for that matter and the other security services, the tools they need to keep us safe.
And it is always better, particularly when you're dealing with issues like this, to build from precedent and established practices because then you're more certain - you've got a greater certainty of them being upheld if they are challenged.
QUESTION:
Prime Minister, on the idea, the South Australian idea, of a dedicated share of income tax going to the States, do you see that that has anything going for it as a concept? And I think there was a suggestion from Bill Shorten today that that may then lead to each individual State adding to the income tax burden on workers so could I get you to respond to that suggestion or perhaps any other Premier, to respond to that idea that it would lead to an increase in the overall tax burden?
PREMIER WEATHERILL:
Given I was the author of it, it's not capable of increasing the taxation burden on individual States because it doesn't - implicit in the proposal, is the Commonwealth will retain control of the taxation rates so it's not a proposition that could lead to that outcome.
QUESTION:
Do you see any merit?
PRIME MINISTER:
I think the Premier has elegantly debunked Mr Shorten's latest scare campaign so I can't add to it.
But the proposition that the Premier of South Australia has made is one that is being considered. It's not one that anyone else has supported but we are looking at this across the board.
CHIEF MINISTER BARR:
[inaudible]
PRIME MINISTER:
Sorry, Andrew supported it.
We're also looking at state taxes, the States have big tax bases of their own.
We're looking at these issues - we're looking at the tax base of Australia or the tax bases of Australia from state - including local - state right through to federal, and saying, "What can we do to find the revenue we need in the manner that imposes the least brake on the economy?"
Because we know the most important thing we have to do in this regard is drive growth and jobs because the stronger the economy and the more people are working, the less charge on Government in terms of supporting people that are out of work, in terms of social service transfers and so forth and of course the higher tax receipts are.
A stronger economy is virtuous from every point of view.
Ends