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

Thank you very much, Mr Speaker. The reason we are engaged in tax reform is because we want to ensure that we have an increase in the overall competitiveness of the Australian economy, and that includes in regions like the Hunter and Newcastle and right across the nation. You do that by making sure that you have got globally competitive tax rates for Australian businesses. You bring down the tax burden for Australian small business. As the finance minister quite rightly said in his response to an earlier question, the contrast now is stark when it comes to the company tax rate. How many companies, for example, in the honourable member’s electorate will be paying the company tax rate? Under this government it comes down to 28 per cent. Under the proposal by the Leader of the Opposition it goes up to 32 per cent. That is a four percentage point difference in the company tax rate for all those companies in the electorate of Paterson.

Furthermore, how many small businesses do we think there are in the electorate of Paterson? A large number, and I am sure the relevant minister will give me the figure before long. Small businesses, in addition, those that are not incorporated, will all benefit from the additional measure of the tax break concerning $5,000 of their assets in a given year.

These are the changes that we make to the economy on the ground. A further change that we make to the economy on the ground in electorates such as that represented by the member for Paterson is an investment in the Hunter Expressway, a very large scale investment in the transport infrastructure of the region—$1.45 billion. I seem to remember that the member for Paterson promised this, and promised this again—and guess what happened? Nothing actually happened.

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