Morrison and Bowen clash but concur major tax reform is a long way off

IT’S the longest election in history, right? You’d think these two wouldn’t agree on anything during this critical time. But you’d be surprised.

Treasurer Scott Morrison during the Treasurers Debate. Picture: Stefan Postles/AAP

The two men who want Australia’s economic tiller in their hand after July 2 today agreed on at least one thing, which will disappoint those who rate tax reform a number one priority.

They concur this won’t happen for some time. And this election was not that time.

One interesting point during their debate today came at the 56th minute when Treasurer Scott Morrison began referring to “Christopher” instead of “Chris”.

The full first name was used in the reproving tones of an elder wanting to put a junior in his place.

But that’s about as uncivil as things got during the encounter between Mr Morrison and shadow treasurer Chris Bowen at the National Press Club.

It was a well-informed engagement which further identified the competing paths to jobs and economic growth: the Coalition is heading towards corporate tax cuts; the ALP wants boosts to education.

And it put Mr Bowen, a former Treasurer, on the same podium as the incumbent. However, he also had to explain why Labor only this week revealed it would not extend a $4.5 billion school kids bonus it had previously championed.

“We’re announcing our policies because of the damage that you’ve done to the Budget. We cannot afford to reintroduce the schoolkids bonus,” he said, claiming the decision was made three weeks after the May 3 Budget.

Mr Morrison rubbed in the point by referring to a second Labor backflip on tighter pension rules, which the Opposition had fought but now support.

Which allowed Mr Bowen to punish loose talk from the Treasurer.

“We got that (pension measure) through the Parliament through no help from the Labour Party. We had to work with the Greens who were the more sensible economic partner when it came to these types of changes,” said Mr Morrison.

Sco-Mo called his counterpart ‘Christopher’ a couple of times to show his seniority. Picture: Stefan Postles/AAP

“Now, on the other side of an election, if he is the Treasurer, his deputy Treasurer will be (Greens) Adam Bandt…”.

Mr Bowe interjected: ”You said you had done a deal with the Greens? You boasted you had a Coalition deal with the Greens. Are you against or for them?

But there was a point of agreement.

As far as a total redesign of the tax system goes, neither side thinks it can be done in one hit.

“I understand the argument for root-and-branch and holistic reform. I understand the argument,” said Mr Bowen.

“But history teaches us that proper tax reform comes from hard work, dealing with issues as you go.

“We are going into this election with controversial plans, negative gearing, capital gains tax, tobacco excise … This is hard work.

“It’s not the result of root-and-branch review. I think frankly that makes the problem too hard. Too big. You are trying to fix everything at once.”

Treasurer Scott Morrison said the process was never-ending.

“As John Howard used to say, an ever receding finish line,” he said.

He accused Labor of tax changes designed to bring in extra revenue, not to make the overall system more efficient.

“We will continue to engage to make sure our tax system is fit for purpose,” said Mr Morrison.

“The Labour Party confuses tax grabs with reforms. What they are doing on negative gearing is a cash grab.”