Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

I thank the member for Herbert for his question. On the consultations at present between companies and the Treasury panel, they cover businesses from right across the mining spectrum. I would encourage the honourable member to ensure that the company in question is fully engaged with the consultation panel. Secondly, the member for Herbert asked a question about the impact on cost of living of the government’s overall tax reform proposal. I would draw his attention again to what is contained in the Treasury’s analysis of the overall impact on consumers and, furthermore, to the analysis just referred to by the Treasurer in his response and particularly to the comments today by Professor Quiggin on the question of the overall impact on prices.

When it comes to prices, as the honourable member would be aware, the changes to the company tax rate and for small businesses also will have an impact on how profitable those businesses are overall. Can I say also that the profitability of those firms, particularly if they have a turnover in excess of $5 million, is directly affected negatively by the Leader of the Opposition’s great big new tax on every business in the country turning over more than $5 million. The flow-through impact on cost of living for bread, milk and other basic grocery items right across the food chain is significant, as many people from the corporate sector very plainly pointed out when the Leader of the Opposition announced that policy only a couple of months ago—a policy he continues to support. I would also encourage the member for Herbert to encourage his constituent to directly engage with the Treasury panel and to ensure that the concerns raised by them are effectively addressed by the Treasury.

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