Journalist: Karen Andrews, do you see any benefit in raising the rate of the GST?

Karen Andrews: That’s an issue that has been discussed for quite some time, what I can say to you is that certainly we’re looking at taxation in a very holistic manner and it certainly has been raised by, in fact, some of the States themselves but certainly many individuals, that we should be looking at an increase to the GST. Now our position is that we need to look at taxation as a whole, and we would certainly be wanting to continue discussion with the States and Territories to work out what an entire package of reform would look like.

Journalist: Just before we move onto that entire package though, there’s news today about a model that was tested by the Parliamentary Budget Office for raising the GST from 10 to 15 percent and tying it to most goods and that says it would raise an extra $65 billion a year, that must be tempting.

Karen Andrews: Certainly we’ve got to look at what we can do with some savings but what we want to do is make sure that whatever we are doing, particularly from a taxation perspective, is going to be fair, particularity for those people that are most disadvantaged in our community. So we’ve got to look at what the potential savings would be and see how that would play out across the entire community, but particularly for those who are disadvantaged.

Journalist: And in your eyes who are the most disadvantaged people in our society, is that perhaps people on welfare payments?

Karen Andrews: Look certainly they would be amongst the most disadvantaged in terms of financial capacity to pay and to sustain an increase in the GST which is a consumption based tax. So certainly we would want to make sure that those people where not going to be even further disadvantaged in any of the taxation proposals that were being considered, so they are key to us in determining a way forward.

Journalist:  How do you do that then, do you increase the welfare payments?

Karen Andrews: Look that’s certainly an option, it’s not one that we’re looking at closely at the moment as far as I’m aware, there’s been a range of proposals that have been put and you’ve spoken earlier about some models that have been done of various scenarios, of cause that would have been done, and it would have been done by many individuals as well, not just the Government alone on that. And as part of those scenarios we would have to look at how we actually deal with those people who would be least able to afford an increase in a consumption based tax which is the GST.

Journalist: So perhaps on the table is increases to welfare payments, but perhaps not because I guess this debate does keep rolling on and without much detail. When are we going to see some details for what the Federal Government wants to do?

Karen Andrews: We should be able to have some more options more firmly in place by the beginning of next year, so early 2016. So we will continue to work on a taxation system, one that is certainly going to fit in with what the Prime Minister has said in terms of our economy being agile, being nimble, something that is going to improve our competitiveness and make sure that we are prosperous into the future. So that work is going to continue, there will be a report back too, it’s called the Council on Federal Financial Relations, and that actually will take place early next year, so that’s when we have some more concrete proposals on the table.

Journalist: And at the moment as well as hiking the GST, concurrent with that, you mentioned earlier, in the package, are there likely to be tax cuts for low and middle income earners, can you tell us a bit about what might be on the table there?

Karen Andrews: Look there’s no hard detail at this point in time and quite frankly, before we get ahead of ourselves in terms of a discussion about increases to the GST, we all need to be very mindful of the fact that there would have to be a strong commitment from the States and Territories that they would be supportive of changes, and I think Arthur Sinodinos sad earlier today, and he’s the Cabinet Secretary, that at the very least for there to be any successful changes to the GST it would require the States and Territories to be at least neutral in their position before it could be taken to an election. So at this stage it’s some pretty serious discussions with the States and the Territories to determine what their view is.

Journalist: Well, in Queensland the State Government here is against any hike to the GST, that’s sort puts a bit of a full stop to the debate doesn’t it then?

Karen Andrews: Well it makes it very difficult but I would hope that the Queensland State Government, and other States and Territory Governments as necessary, would come to the negotiating table in terms of tax with an open mind and look not only at what is in the best interests of their respective States and Territories but what is in the best interest of us as a nation.

Journalist: Karen Andrews, Arthur Sinodinos, the Cabinet Sectary, has also been quoted as saying that you need to get the debate out there on a GST but that you also need to take it to the people for approval, it’s set off a lot of speculation about an early election do you see a case to go early to the polls?

Karen Andrews: I understand there’s been a lot of speculation about that and quite frankly, I can’t remember when there hasn’t been speculation in the media over the last few years about there being an early election, but our view is pretty clear at the moment that we still have a lot to do and that we would be aiming for an election towards the second half of next year. That’s certainly what I’m working towards and I’m sure that my colleagues are doing exactly the same.

Journalist: Because if it was before say August, it would have to be a double dissolution election or a house only election so it could get rather complicated.

Karen Andrews: Yes, look, there’s a range of complicating factors as well and I’m sure that the Australian people really wouldn’t appreciate being sent back to the polls for a House of Reps election and then a Senate half election, sorry a half Senate election, some months later. So I think there’s a lot to be said for us running our full term as we’ve clearly stated so far.

Journalist: So if the Prime Minister asks for your views on this, Karen Andrews, you’d be advising him against an early poll?

Karen Andrews: I’ll be advising that I’m working towards a poll in the second half of next year.

Journalist: So Karen Andrews are you disappointed to have lost the chance to ever being a Dame in the Order of Australia?

Karen Andrews: No, not at all. I think that this is actually an excellent outcome and it really supports what people have been saying to me and what I believe is the view of the public generally.

Journalist: What have people been saying to you?

Karen Andrews: Well there was a lot of consternation about it in the first place, about it being introduced and that they believe that Australia is a modern country and that Dames and Knights don’t sit with the modern economy and the modern nation that Australia is. So there was quite a bit of push back, I would have to say, about Knights and Dames so I would expect that there would be a lot of positive feedback given the position of the Prime Minister.

Journalist: Now this was a captain’s pick of Tony Abbott as Prime Minister, do you feel confident that Malcom Turnbull won’t be making any big decisions by himself?

Karen Andrews: Malcom Turnbull ‘s made it very clear that he will lead a consultative government and everything that I have seen so far supports that he is actually doing that, so I think it’s great.

Journalist: Now Karen Andrews you’ve been in Korea and Singapore in the past week talking about science collaboration, are there any areas that Australia can work with those countries on?

Karen Andrews: There are certainly some real opportunities, not only in Korea, but also in Singapore, so when I was in Korea I was at a Ministerial meeting of the Committee for Scientific and Technological Policy so the focus was very much on scientific policy, for OECD countries and neighbouring countries, into the future. What was really interesting out of that, is that our research priorities line up very closely with what is happening in the rest of the world, there’s certainly going to be an emphasis on environmental science and I’m very supportive of that, and I’m not just talking about CO2 emissions. I’m speaking more broadly about environmental sciences, being conscious of what we’re doing to our water ways, to our oceans and particularity to the soils that we have here. So I thought that that was actually a very big positive coming out of the meeting.

Journalist: Karen Andrews thanks very much for your time today.

Karen Andrews: You’re welcome, good to speak with you again Emma.

ENDS