Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Hansard source

There was a time when the Labor Party understood—indeed, a prominent figure on the opposition benches wrote a book about it—that reducing company tax, reducing businesses taxes, would, because it increased the return on investment, deliver more investment. And, if you get more investment—do you know what?—you get more jobs.

Around the world companies are reducing business taxes. We pointed to the policies of the incoming administration in the United States. You can look at what the UK government has done. That has been a policy followed by Labor governments in this place as well for the obvious reason: if you increase the return on investment, you get more investment.

Turning to the ratings agencies: the ratings agencies have been absolutely crystal clear. Their concern is that the government's budget will not be passed through the parliament because of the reckless opposition of the Labor Party. That is what their concern is. They recognise that we have an economic plan that sets out a path towards a budget surplus. They recognise that and they accept it. Their concern is the political risk, and that is why they welcomed the omnibus savings bill, that is why they welcomed the passage of the superannuation reforms, and that is why they have welcomed our ability, when it is there, to secure our budget policies through the Senate.

But we work very hard and respectfully and constructively with the crossbench, and we will continue to do so. But the Labor Party know very well that any and every measure in that budget can be passed if they support it, and it is their opposition which puts the AA rating at risk. It is the political risk—

An honourable member: You're the government!

The honourable member says, 'You're the government.' You're quite right. That is something you have not quite twigged to yet. We are the government; we won the election. The reality is: you cannot turn around and say to us, 'You're at risk of the AAA rating being pulled because of the rating agencies,' when the risk that the rating agencies identified is that the government's plan will not get through the Senate because of the trenchant political opposition of the Labor Party. So, if the Labor Party are concerned about the AAA rating and if they want to support the AAA rating—and we would be grateful for it—then they should support the budget measures, because their passage will secure it.

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