Australia’s new treasurer flags tax cuts

“There’s plenty of people out there who want to raise taxes and have a new idea for a tax every single day of the week”, the treasurer told reporters during a joint press conference with the finance minister, Mathias Cormann.

His new treasurer Scott Morrison has flagged income tax cuts and a housing affordability package as some of his initial priorities.

New prime minister Malcolm Turnbull, who signalled earlier this week that tax reform will be a key focus of his leadership, has reportedly junked his predecessor’s white paper on taxation only weeks away from the release of the preliminary report.

The youngest minister in cabinet said it’s important Australia is a low-taxing economy to lure entrepreneurs from all over the world. Treasurer Scott Morrison with former PM Tony Abbott.

Mr Morrison said he was unhappy that the tax-to-GDP ratio is rising, although it was low by historical standards.

“It came as a shock”.

Following the discussion paper released in March, more than 700 public submissions have been received ahead of the green paper, which was due out in mid November, but now won’t be released until next year.

However, Mr Turnbull hit back at suggestions that his administration was abandoning tax reform, posting on his Facebook account. A period of review would follow, then a white paper, and the formation of a new tax policy the government would be taking to the next election. Mr Abbott claims he was never told of the possible challenge to his leadership before Malcolm Turnbull ousted him last Monday.

“We have not stopped work on the tax white paper – quite the contrary, as I said earlier in the week tax reform is at the centre of our efforts to make Australia a more innovative, productive and prosperous economy”, he said. “If we can focus on the benefits of tax reform, then I think there will be a different appetite for it in the community”.

“And we are one of the smaller spenders”, the CEO said.

MR Abbott accused his former social services minister of misleading Australians by saying he’d advised the prime minister’s office that “things were febrile” and to be on high alert. It now appears that the reform program may be delayed until the vote.

In response to a report in the The Daily Telegraph on Wednesday, Mr Morrison confirmed he was interested in lower, simpler and fairer taxes but did not comment further on whether there would be tax cuts.

“I think you will find that Costello plays a fairly significant role in what happens next”, said a leading Victorian Liberal.

Morrison said it was important to get on with the savings task.

Mr Morrison also hinted that he would not increase the Medicare levy, and described the current spending as unsustainable.

The original headline for this story stated the white paper process would be “axed”.