Luke Howarth (Petrie, Liberal Party) Share this | Hansard source

Through you, Chair, the opposition leader said:

Friends, corporate tax reform helps Australia's private sector grow—

That is what the Leader of the Opposition said—

and it creates jobs right up and down the income ladder.

That was the Leader of the Opposition not too long ago, and now, in this place after the election, they come in here, play politics and vote against everything the government wants to do to help Australians right throughout the country. As I said before, we are the only party with a plan. We are the only party with a plan for jobs. Those opposite have absolutely no plan at all.

We need a more competitive tax rate to attract foreign investment so that domestic households will not need to sacrifice current consumption to fund the investment. Reducing Australia's corporate tax rate would increase Australia's appeal as a place to do business. It would encourage higher levels of investment in Australia and lead to capital deepening, promoting growth in productivity, innovation, employment and wages. It is a point not lost on the Governor of the Reserve Bank of Australia, Philip Lowe, who has emphasised the 'need to make sure that our tax system is internationally competitive'. We need to be internationally competitive in the global economy. He is not alone. In the United States, President Trump has pledged to slash company tax to 15 percent.

I know that Qantas has just opened up a new maintenance facility in the United States, employing people to maintain planes. At the same time, people in my electorate who were working for Qantas in Brisbane have had their hours reduced. That is what has happened. I think that if we are stuck on a high company tax rate for decades into the future because of the Labor Party opposite we are going to see more jobs go to countries where they have a lower company tax rate and lower wages.

The estimates in the US are that a one percent cut in local business taxes will increase the number of local establishments by three to four percent over a 10-year period. The United Kingdom predicts that reducing the company tax rate to 20 per cent—and they are going further—would result in a permanent increase in investment of up to 4.5 percent over a 20-year period. So we are not alone in our push to reduce the burden on business.

The government's enterprise tax plan is a clear and defined road map. It is a solid and well-drafted plan that harnesses maximum opportunity for growth and shared prosperity. A five percentage point reduction in business tax will deliver a permanent boost to the Australian economy. The benefits to workers and the economy of lower tax will begin to flow immediately. Importantly, it will help 1.8 million Australians looking for extra work to boost their take home pay. It will give them more hours and assist with affordable living. If we do not cut company tax rates, we stand to stifle progress and to derail hope, confidence and achievement.

I love representing the people of Petrie. I take it very seriously. I come to this place because I want to see an improvement in the lives of all Australians. Whilst I am a politician, it is not in my nature, I must say, to play politics with a lot of these things. I want to actually get things done that help people. One of the most frustrating things about being in parliament is listening to those opposite—and sometimes maybe even those on our inside—play politics with issues that do not help the Australian people. I call on the crossbench and the Labor Party to get on board with what the leader of the Labor Party spoke about just a few years ago and support these company tax cuts, because I know that it will make a real difference not just in my electorate but right throughout the country. If these tax cuts do not pass through the Senate then it will not be me who is standing in the way; it will be those opposite, and they will have to answer to future generations. (Time expired)

See this speech in context