Former Treasurer Peter Costello has fired a damaging salvo at the Abbott government just weeks out from its second budget , describing its approach to taxation as a 'morbid joke ' . Ever since the government released his tax discussion paper calling for a 'lower , simpler , fairer ' system there has been nothing but suggestions for taxes that are higher , more complicated and less economic , the former Liberal treasurer in an opinion piece in the Daily Telegraph . 'Lower , simpler , fairer is looking like a morbid joke , ' Mr Costello said on Tuesday , citing a proposed bank deposit tax and a push for a greater contribution from multinational companies . Peter Costello slammed the Abbott government , describing its approach to taxation as a 'morbid joke ' Treasurer Joe Hockey was not impressed with the Costello critique , lamenting the fact his Liberal predecessor had more tax revenue to use during the Howard government years . 'The government needs to restart the conversation about getting taxes down , not up . ' He also slams Labor and the Greens , saying using the tax system to re-distribute income would trap Australians in poverty . 'The tax system is there to raise government revenue at the lowest cost in the most efficient way doing the least damage to the economy . ' Treasurer Joe Hockey was not impressed with the Costello critique , lamenting the fact his Liberal predecessor had more tax revenue to use during the Howard government years . 'If I had the same revenue as he had , then I 'd be getting $ 25 billion extra each year to spend on things , ' he told Sky News from New York , pointing to the abolition of the carbon and mining taxes . 'Everyone 's entitled to give free advice and frankly , that 's what it 's worth - it 's free advice . The Abbott government is due to deliver its second budget on May 12 . Assistant Treasurer Josh Frydenberg praised Mr Costello as a 'very distinguished ' former treasurer , but said the government had reduced the overall tax take and a small business tax cut was on its way . ' I would suggest that people stop looking back to what it was and focus on the challenges of today and tomorrow , no matter who they are . ' Assistant Treasurer Josh Frydenberg praised Mr Costello as a 'very distinguished ' former treasurer , but said the government had reduced the overall tax take and a small business tax cut was on its way . The coalition was also having to deal with lower commodity prices than the Howard government enjoyed , he told ABC radio . In an opinion piece , Fairfax economics editor Peter Martin argued that Hockey had inherited economic problems created by superannuation changes Costello introduced when he was treasurer . Mr Martin labelled 2006 budget changes which saw super payouts become tax free for the majority of Australians aged over 60 as 'stupid ' and 'expensive ' . He quoted economist Saul Eslake who labelled the change 'one of the worst taxation policy decisions of the past 20 years ' .
Peter Costello slammed government pledge for 'lower , simpler , fairer ' taxes . The former treasurer singled out Joe Hockey 's proposed new bank tax and Josh Frydenberg 's push for revenue from multinationals . Mr Hockey hit back at Mr Costello , saying he wished he had the tax revenue the former treasurer had when the Coalition was last in power .