Mr Pallas (Tarneit)  —  The Coalition  promised  in 2010 to  deliver  service improvements without  increasing debt or  raising taxes. That was  its principal commitment  to the  people of  Victoria. That  is on  page  2  of  its financial management policy  2010.  I  make  the  point  that  this  is the highest taxing government in Victoria’s history. It  has increased the tax take by 7.2 per cent this year — 7.2 per cent!

— with a  21.5 per cent increase in  own-source revenue over the  life  of this government. Let me  put  that  again:  a  21.5  per  cent increase in own-source revenue  — that  is, the  things  that  it  is responsible  for and  capable of managing over the life of this government.

Let us  not pretend that this bill is anything more than  a continuation of this government’s  standard  behaviour.  It  is  a government obsessed  with  raising revenue wherever it can find it.  This is a bill that simply feeds into the rank hypocrisy of this government on tax.

Those opposite  railed against revenue  increases in opposition,  yet  they have simply abandoned their commitment  to the basic principles  they offered to  the people of Victoria at the last election. They have become completely addicted to revenue raising, and this bill is a testament to  that. Motor vehicle stamp duty rates are up by 40 cents per $200.

The metropolitan planning levy, that will commence on 1 July  2015 will be a new tax  of $130  per $1000  on a planning  permit with  construction costs  over $1 million, which is  projected to raise $17 million a year. There is a forecast of $4.4 billion in stamp  duty in the 2014-15 revenue estimates — up $251 million. Taxes from  gambling are to rise $139 million to $1.8 billion. Traffic fines are up  by  $92 million to $748  million, with camera fines to  rise by $71 million. Public transport fares will increase by CPI plus 2.5 per cent from 2015.

We know this government loves new taxes for things it said it would not impose a tax on,  including  the  port  licence fee, the fire services property levy, the land-holder  duty regime, parks charges, waterways  and  drainage  charges,  the environmental contribution levy and various new fines — including for insulting the gaming minister and swearing in public. We cannot  forget that  it has  also managed to  extend its skills beyond simply applying new taxes to increasing old taxes that it hated.

These include the congestion levy expansion, the increases to all fees and fines and the previous motoring fee increases and public transport fare increases. The hypocrisy is writ  large in this bill because it demonstrates exactly where this government’s priorities lie: say  anything and do  anything before you get  into government, and then squeeze the taxpayer for all he or she is worth.

When  in  opposition the coalition  railed against the  revenue  raised by speed cameras.

It  was absolutely outraged by the revenue raised by speed cameras and  speeding fines.  It accused  the Labor  government of  using this  money  to prop  up its budget. On 27 May  2010 the Minister for Public  Transport, who is at  the table and was in opposition at the time, said in this place:

  It is  obvious that the government’s sole object with the use of speed cameras  in Victoria is to raise and protect  the revenue  stream that  flows from  the  traffic camera office to state Treasury.

On 24 June 2009 he said:

  …  the Premier has budgeted for  a 10 per cent jump,  of almost $40 million,  from speed cameras to $437 million in 2009-10; quite clearly, if these cameras  are proven they could pay for themselves, they would have been installed.

This year road safety revenue from fines are  expected  to  increase  from  $305 million in 2013-14 to $376.4 million in 2014-15, a 23 per cent increase.

When those opposite stand in this place  and talk about addiction to revenue and when  they seek  to demean  the  efforts of  the previous  government to  take a responsible  role  in  bringing  down  our  road  toll, they paint it as revenue raising,  but when  they  increase revenues  by  more  than double  in  adjusted percentage terms, it is  all  fine  because  they  are  now  in government. That hypocrisy  stands  loud  and large in this bill. This revenue brings  the  total increase from  2010-11 to 2014-15 to $141.5 million, or 60 per  cent, since  the government has had control since the 2010-11 budget.

Let us look at GST. This government says a lot  of this is not its fault — that it has a lot to do with the fact that Victoria is not  getting its fair share of GST revenue. The  average relativity  for the state of Victoria when Labor is in government  federally is a 91.7 per cent per capita return  on GST.  The average under the federal Liberal coalition is an 85.6 per cent return. If the Treasurer wants a fair share for Victoria, he should vote Labor at the next election because that is how he will get a decent return.

This  year, in 2014-15, the relativity  to Victoria will be  88.3 per cent for a grant of $11.781 billion. If we got Labor’s average relativity of 91.7 per cent, this would be another $456  million  flowing into the coffers of Victoria. Those opposite shed crocodile tears about how they are being  done over  by their best mate in Canberra,  Tony Abbott, the man they  told us we could trust.  They said there was no problem with Tony, but there is a problem with Tony. His problem is that  he does not  like Victoria  and he  treats this  government like  a branch office. He walks all  over  it when it is  necessary  and in his interest.  This government is collateral damage and dispensable so far as the federal government is  concerned.  The  federal government  has  effectively formed  the  view,  as conservative  federal governments do  over and over  again, that Victoria should get less and less of its fair share.

The $80 billion cuts to the states over the period 1 July 2017 to 2024-25, given current allocations of about 25 per cent to Victoria, will see us lose about $20 billion over that time, or  about $2.5 billion per year. That is  on  top of the more than $10 billion  this government has cut. It just bats its cuts out to the boundary. We  have  a  very  good  shadow  Minister  for Finance, the member for Preston,  who keeps a  good  eye on the numbers.  He  is much better than  those opposite.  Essentially the numbers  are squeezing average  Victorians day in and day out.

What does this bill incorporate? The  great achievement  of this bill, so far as this  government  is concerned, is the  cut to payroll tax from  4.9 per cent to 4.85  per cent  — minor  relief, albeit  I am  sure  that businesses  will take whatever they can get from this government because it is clear the government is plundering their  pockets on  the other  side of  the ledger. This is the  first payroll tax reduction that the Napthine government has put in place.

Labor cut payroll tax eight times in 11  years. It went from 5.7 per cent to 4.9 per cent, an average cut of 0.1 per cent — that is, double this year’s cut. Our average cut was twice that proposed in this bill, and we did it year after year.

The  previous  government also cut WorkCover premiums. We cut them every year of our last seven years  in  office, for a total  reduction of 40 per  cent.  Those opposite have done nothing in three budgets. They have  underperformed, but they now expect  a standing ovation for  this underwhelming effort. As the Australian Industry Group pointed out:

  This payroll savings is dwarfed by increase in $548.4 million to  be collected  in car stamp duty over the forward estimates: around $140 million per year, or  $25 more on each car registration.

Business is not thanking the government for what it is doing.

Business knows  that if you take  with one hand and give  back with another, you had better make  sure that the weight is  on the side of the ledger of those who need  governments  to  stop their  addiction  to  revenue raising.  There  is no government in this state’s history more addicted to revenue raising than that of members opposite.

Think  about the craven  hypocrisy  of this government  and its strong  feelings about  payroll tax. Remember it was the now Premier  who in this place on 7 June 2006 said:

  I think payroll tax is one of the worst and  most insidious  and inappropriate  taxes in our taxation system.

He hated it so much that he kept it stuck at its current level until finally the government got around to making this paltry effort.

He  also demanded an immediate payroll tax reduction because of  job  losses  in 2000. At  the time the now  Premier  was out there saying,  ‘You  need to create jobs. You should  go about it by cutting payroll tax substantially’, but we have seen this government fail time and again.

We heard today that the government has been outperformed by that minnow Tasmania in terms of being able  to secure 300 jobs for  Victorian workers at the  Qantas call  centre. That is  an  indictment of this  government and its  underwhelming efforts in terms of dealing  with job reductions compared  to Labor’s continuing efforts and commitment, and its underwhelming efforts when it comes to returning Victoria its fair  share of GST revenue. Let us not  forget  that the guy who is the record-holder for Victoria getting its worst share  of GST revenue was Peter Costello’s second-best adviser. We put the blame purely and  simply at his feet, because  when he was advising Peter Costello we got below  the  average  Liberal return on GST share.

That is how comprehensively committed this government is to fitting out the will of  a federal  Liberal  government  —  that is,  to do  in Victorians  at every opportunity.

Victoria  has been suffering  from  seriously stunted jobs  growth  for the last three years. This  financial  year  has  seen  negative  job  growth  of  16 400 seasonally adjusted jobs. On average in the last three years we have seen barely 18 000 jobs  created per  year. That  is less  than one-third  of those  created during  Labor’s last term in office. In Labor’s last budget we created nearly 80 000 jobs. When it comes to jobs this government is taking this  state backwards. Labor led in the creation of jobs by effectively ensuring that when we were  in  the  business of identifying what tax regime should be  in place, the first thing that came  to our minds was how we could take the burden off business, and we did it year on year.

We do not need this government to talk about its commitment to growing jobs.  All we  have to do is look at its performance, which is pathetic. It is not just pathetic, it is retrograde and it is taking our state backwards. We know that unemployment is at 6. 4 per cent. It has been above 6 per cent for five months. In December 2010 it was 4.9 per cent seasonally adjusted.

The exit of  the motor  vehicle industry  could result  in a catastrophe for the state.  According to the University of Adelaide it could result in 100  000 jobs being lost in Victoria. These are not things that we should sit back and take as academic observations; this is a warning bell for the government. Members should be very clear: that is nearly twice as many  jobs as this anaemic government has managed to create in over three and half years.

That is how many jobs are at risk for the loss of one industry, an industry that effectively this  government’s federal friends and colleagues — the people they are  superglued  to  politically — basically said, ‘If you’re going to  go,  go now’, and  with them went the opportunities of so many Victorians and of so many businesses.

In relation to the  metropolitan planning levy, the  government is expecting  to raise $17  million  next year to  support the Metropolitan  Planning  Authority, which will have  operating costs of about  $10 million. The  Australian Industry Group  has classified it  as  an  extra  charge  to  business.  That  is  hardly earthshattering;  it  is what  this  government does.  It  knows  how to  charge business. The Property Council of Australia said:

  The … council will vigorously oppose the introduction of a new  tax  on  apartment buyers  to  fund the  activities  of  the new  Metropolitan  Planning Authority …

  While we welcome the increase in funding for the  MPA, a government projecting  multibillion surpluses  shouldn’t  be introducing  new  property  taxes.  This  action  combined  with the 2013  expansion  of the congestion  levy  exposes a  government with an unhealthy addiction to property taxation.

Here  is  an  industry group that has effectively said, ‘This  is  a  government addicted to property taxation’. Pitcher Partners said:

  Victorian employers will be given some minor tax relief …

I was referring there  to  the payroll tax  coming  into  effect on 1  July.  It continues:

  However, businesses in the  property development industry will  be hit with  a  new  metropolitan  planning levy,  which  will be imposed  on  planning permit  applications for projects worth more than $1 million.

This is a government supposedly dedicated to getting rid of red tape and furious about the cost of construction in metropolitan Melbourne. Why do we  get rid  of red tape? We get rid of it because it is a burden and a cost on business. You do not  have  to just take away  red  tape; if you want to  take away the burden on business, you take away the tax  burden, and  that is  what this  government has failed to do time and again.

The bill, as paltry as it is in terms of payroll tax, does not go  anywhere near the achievements of the  previous government. Indeed,  budget  paper 2, says  at page 32:

  Excessive  red tape imposes unnecessary costs on business and is a barrier  to  productivity  improvements. The government’s commitment to reducing regulatory  costs imposed on businesses,  not-for-profit organisations and  individuals by  25 per cent by July  2014 will help ensure businesses and individuals continue  to relocate to Victoria.

You  have  to ask how that  is going for the  government,  because the record of destruction in terms of employment  opportunities as evidenced by the Australian Bureau of Statistics is that this government  is well  and truly behind the odds and it is taking this state backwards. Yet at the same  time it is introducing a levy  on planning  applications  for  the development  of  land in  metropolitan Melbourne with an estimated cost starting at over $1 million.

I understand that amendments have been brought before this house, and I am  very disappointed  in  the  way the government has sought to brief the opposition  on this matter. Here is  what happened. As the shadow minister for the bill in this place I was briefed by the Treasurer’s office, and we were given a very good and fulsome brief.

  Mr Morris interjected.

 Mr Pallas — I hear from the member  opposite that people were not  briefed. I defy him to take  us through  that. Effectively,  when as  the shadow minister I sought to be briefed on this,  I was given a briefing.  Then the government came into the place and said, ‘We have some amendments’. Who did it brief and how? It briefed the shadow planning minister in the other place, and when we said, ‘That is  all well and good, but the bill is in this place’, it said, ‘We have already briefed the shadow planning minister in the other place, and that will do’.

Quite frankly, that is  not  good enough, and we  will  not accept that sort  of behaviour in the future.

This government enjoys its capacity to squeeze  more and more out of Victorians, the  slugging  of motorists being  a  classic illustration. In  tandem  with its federal colleagues,  and aiding and abetting them in their efforts to pilfer the pockets of Victorians,  we  have seen the government pushing up the fuel excise. Once again the government seems determined  to slug motorists.  Car registration is to increase by  $25 on top of consumer  price index increases, and stamp duty will go up 40 cents on every $200.

What we  see is  that Premier  Napthine’s vow  to go  kicking  and screaming  to Canberra  over GST  returns  came to  nothing.  This government has  effectively failed each and  every  test  it set for itself in  terms  of  what  it would do because  of  its  special  relationship  with  Canberra.  What  sort  of special relationship have these guys got?

You have  to wonder when every now and then you see  the shadow-boxing that goes on from the members of this government, with  their  feigned  outrage  about the predictable doing in of  Victoria by the conservative  side of federal  politics and their attempts  to  distance  themselves  by saying, ‘That’s not us. We’re a lighter shade  of blue here in Victoria’.  They are not. They  are fully paid up collaborators and conspirators. They have superglued themselves  to  the federal government — a government that has consistently, as this government has in this bill, increased the tax burden on Victorians. The question has to be: why is the government doing it?

We  see  this  orchestrated  shadow-boxing  going  on  by those on that side  of Parliament,  with  a  choreographed  haymaker at their federal  colleagues  that misses the mark. It is choreographed: here it comes, but it is going to miss.

We see this choreography over and over again: ‘If you won’t give us anything, if you won’t help us with anything, can you just at least let us pretend that we’re being angry with  you?’;  ‘Sure, you can be  as  angry as you  want,  but you’re getting nothing’. That is basically  testimony of this government’s failure, and it is the story of this bill.

This  is  a  bill that seeks to introduce revenue because this government  likes doing it. It likes increasing taxes on Victorians.  How else could you explain a 7.2  per  cent increase in tax take this  year  and a 21.5 per cent increase  in own-source revenue over the life of this government? How else  could you explain it,  other than  a sheer  addiction to  and love of slugging Victorians each and every day in new and interesting ways?

This is a government and this is  a bill that has, in so many ways, broken faith with the Victorian people.

This  is a government that said  it would reduce taxes and debt and not increase new taxes;  but  every day it finds a new  way  of breaching that faith with the Victorian people. This bill stands as testimony of what this  government is good at — the only thing this government is good at — and that is raising revenue.