Mr Hockey said both sides had to stop dumping leaders because voters would never respect politicians who did not respect each other.

"That's why the revolving door in Australian politics must be jammed shut. If we don't show enough respect to each other then how can we hope that the electorate will respect us?" he said.

"The stability of the Howard government has been replaced with rapid and unpredictable changes of government on both sides. That turnover has dramatically weakened the policy hand of whoever occupies the government benches in this chamber.

"Most public servants are very good but some, confused by the inconsistency of policy and the rapid change in the number of ministers, they will simply wait out a minister or a government when they are asked to implement very difficult decisions.

Former Treasurer Joe Hockey delivers his valedictory speech at Parliament House in Canberra on Wednesday 21 October 2015. Photo: Andrew Meares Andrew Meares

"We cannot make it normal to have four prime ministers and four treasurers in just four years. Leadership instability and ministerial turnover is the enemy of good public policy."

Call for policy change

In an emotive farewell, Mr Hockey called for policy changes that he either shied away from, or was unable to implement, in government.


With Mr Turnbull and new Treasurer Scott Morrison still working on tax reform and yet to give any explicit commitments, Mr Hickey gave extensive free advice.

​"We must increase and over time broaden the GST, we must lower all income tax so people and companies are given more incentive to take risks and receive rewards," he said.

Illustration: David Rowe

At a minimum, Mr Hockey said there should be a 40 per cent top personal tax rate "at a much higher threshold" than the current $180,000, a 20 per cent rate for most taxpayers and a 20 per cent rate for business.

"We should be wiser and more consistent on tax concessions to help pay for that, in particular tax concessions on superannuation should be carefully pared back. In that framework, negative gearing should be skewed towards new housing so that there is an incentive to add to the housing stock rather than an incentive to speculate on existing property."'

Mr Hockey said it was inconceivable that in this day and age there was still "non means-tested welfare" in which he included Medicare and public schools.

"We need co-payments in health, greater cost recovery in education and universal means-testing in welfare so we have a sustainable and affordable social safety net for those most vulnerable in the community," he said.

Shadow treasurer Chris Bowen, who opposes a GST increase, said Mr Hockey's views on negative gearing and superannuation tax concessions confirmed he had been rolled by Mr Abbott in government because Mr Abbott – and Mr Hockey – flatly ruled them out this term or thereafter.


"We can only assume he's had long standing views on those issues but was simply rolled by the former prime minister and his office," Mr Bowen said.

"That said, the current rookie treasurer could do worse than carefully examining the member for North Sydney's contributions on these issues."

Lingering unrest

There was further indication of the lingering unrest caused by the leadership change when conservative NSW Liberal senator and Abbott supporter Concetta Fierravanti-Wells said she was one fo the few frontbenchers who survived "the purge of the conservatives".

She said the NSW Liberal base was largely conservative and "many are devastated by the change".

"Some have left and threatened to down tools," she said.

"The change of leadership will have an impact on our party. Unlike the ALP, we do not have the heavy arm of the union movement to come and hand out how-to-vote cards and do the grunt work at elections.

"We rely on a volunteer base, mostly of older members, some who have simply had enough."

Mr Hockey attributed the demise of Mr Abbott to the 24-hour media cycle, the Abbott government being good at policy but poor at politics, and an overly ambitious 2014 budget.

He conceded he and Mr Abbott did not do enough to win the hearts and minds of the people and the Senate, and that they underestimated the time constraints of national security and hosting the G20 in 2014.

Mr Abbott was in the United Kingdon where he is due to give a speech next week.