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It is a real pleasure for me to be here in Nambucca to
make the closing speech of a week long visit to different parts of regional
Australia.
And it is an opportunity to say very quickly to you that
during that week, I have had reinforced some views that I had when I started,
I've learnt some new things, I've got some better understandings
and most importantly of all, I have had the opportunity of talking directly
to literally hundreds, indeed into the thousands of people from different
parts of regional Australia.
Of course, this is by no means the first or the last
time that I will make such an investment of time in the regions of Australia.
And I've done it very deliberately because I am aware that although
at a national economic level Australia is performing stronger and better
than it has for twenty-five years and that's a fact : our rate of
economic growth, our levels of business investment, our levels of inflation,
our levels of interest rates are stronger and better than they've
been for a long time. We are seen around the world as one of the strong
economies, not only of our region, but of the industrialised world. And
that condition nationally is a result of necessary economic reforms that
have been carried out, particularly in recent years.
But, having said that I am aware that not every part
of the country is sharing in a reasonable way the national economic prosperity.
I am very conscious that in some areas of regional Australia, particularly
in some of the smaller communities that have relied very heavily on commodities
that are traditionally part of Australian primary production, there is
a lot of economic difficulty and economic pain.
I am very conscious that the unemployment levels vary.
Unemployment is virtually ceased to be a major challenge in significant
parts of Sydney and some of the other metropolitan centres. But I know
it remains a problem in regional Australia, although it is lower in regional
Australia than what it was four years ago, and we should keep our perspective.
So I've learnt a great deal about those things in
more detail. I've learnt of the strength and the resilience of rural
communities. I've learnt of the commitment of regional Australia
to tackling the problems of relations between Aboriginal Australia and
the rest of the Australian community in an open community based way. I've
sought on all occasions not to meet with special interest groups, but
rather to meet with the community as a whole.
And this is a magnificent gathering of the community
of this part of the north coast of New South Wales. I've been inspired
by the willingness of different groups in the Australian community in
the regions to co-operate together to tackle problems. I think it is important
as we acknowledge the difficulties of many people in the regions of Australia
and their special needs. I think it is also important to remember that
there are some good news stories in the regions. It is not all gloom,
it is not all despair, it is not all high unemployment. There are many
areas of regional Australia that are doing well.
Mention has been made of taxation reform. We are committed
to taxation reform because we believe that when it's introduced it
will strengthen the Australian economy. It will strengthen regional economies.
To start with it will lead to cheaper fuel than you would otherwise have
because of the significant reduction in the fuel excise on diesel. It
will lead to cheaper fuel than you would otherwise have because we are
going to cut the excise on diesel by a significant amount for non-metropolitan
Australia. And that is something that is going only to non-metropolitan
Australia. That is not going to be available in Sydney. It's not
going to be available in Melbourne. It's going to be available only
in non-metropolitan Australia. And that is an illustration of one of the
benefits specifically for regional Australia of our taxation plan.
It is very easy to look at taxation reform simply as
the goods and services tax. It is easy to mount an argument in isolation
against the application of the goods and services tax to one particular
item. But what you've got to do is to look at the aggregate impact.
You've got to remember that our tax plan involves reductions of $12
billion in personal income tax. It will result in 80% of Australian taxpayers,
those earning less than $50,000 a year being on a top marginal rate of
not more than 30% on any slice of their income. It carries with it increases
of 4% on the 1st of July in all pensions and other benefits
to cover in advance the price effects of the GST. And the real value of
that will be related to future increases in average earnings, so that
the value of the compensation is not eroded over time.
There is the abolition of provisional tax which will
be of great benefit to retired people, particularly in the regions. There
is special compensation for the savings of pensioners and self-funded
retirees, also of importance to retired people in the region. We're
totally abolishing the wholesale sales tax. We're getting rid of
the financial institutions duty. Over time we'll get rid of the bank
accounts debits tax and also a range of stamp duties that are levied by
the states.
In other words, it is an aggregate package. We're
cutting the capital gains tax in half which will be of great benefit to
small business men and women. We're cutting the company tax rate
from 36 to 30% which will be of benefit to businesses. And we're
introducing a simplified approach to the accounting of small businesses.
We're having special provisions to quarantine any adverse impacts
on primary producers. So there is a lot more to the tax reform package
than just a goods and services tax, although that is an integral part
of it.
And the reason that I've campaigned very strongly
for this, and the reason why we are going ahead to implement the legislation
is that we believe that it will be beneficial for our community and for
our country. I know that there are implementation challenges, and I know
that people need assistance and advice and explanations in relation to
those challenges. And that will be provided by the Government and by the
Taxation Office over the weeks and the months ahead.
Ladies and gentlemen I am very conscious of the importance
of government services in regional Australia. And I have made it plain
that I do not wish to see any further withdrawal of Commonwealth Government
services in the regions. It's very important in our federal system
that each level of government be accountable for its own responsibilities.
I will answer for the services of the Commonwealth Government and you
will be entitled to hold me accountable and my government accountable
in relation to that. And equally I will expect you to hold Mr Carr and
his government accountable for the services for which they have responsibility
and also of course there are responsibilities at a local government level.
A reference has been made to revenue sharing. I might
point out that one of the benefits of taxation reform is that every dollar
coming out of the GST will go to the states, every last dollar, all of
it will go to the states. And in the years ahead, because of that as the
revenue from the GST builds up the states will have more funds to provide
the basic services, government schools, hospitals, police services and
so forth. For years the premiers of Australia of all political persuasions
have pleaded for a growth tax. They've begged the federal government
to give them access to growth revenue. Now they have it courtesy of the
goods and services tax. And it represents a major break through in Commonwealth/State
financial relations.
Ladies and gentlemen, the greatest thing about being
Prime Minister of Australia is the opportunity it gives you every day
to meet the men and women of Australia from all sections of our community
engaged in all occupations and all pursuits. I never tire of doing that.
I have found the last week immensely rewarding and stimulating because
it's enabled me to meet the men and women of Australia of all ages
in all parts of regional Australia.
Regional Australia is made up of a lot of elements. The
bush as we colloquially call it usually refers to the more remote parts
of Australia, but it helps to define our identity as Australians and,
it is absolutely irreplaceable as part of our understanding of what it
means to be an Australian.
The coastal communities of Australia have a distinctive
character of their own. They have a great lifestyle, they have a great
sense of community, they have a great commitment to their future. And
they have a great capacity to solve problems at a community level. They
do have challenges that people living in the city don't have. And
part of the journey that I've undertaken over the last week is to
gain a better understanding of that.
I thank you most warmly for the welcome that you've
extended to me today and I look forward to talking to you over the next
few minutes over morning tea. Thank you so much.
[ends]