Jenny Macklin (Jagajaga, Australian Labor Party, Shadow Minister for Families and Payments) Share this | Hansard source

That's very kind of you, member for Swan, to remind me of this. We around the world have seen workers' wages stagnate—all of us. Even those opposite who want to ignore what's happening to wages, we're seeing wages stagnate while the profits of big companies have soared. We're seeing the casualisation of the workforce. Too many young people are stuck in part-time and insecure work. While this is happening in our economy and society, we're seeing tax cuts from this conservative government and cuts to social services for the most vulnerable people in our country.

Let's think very carefully about the supposed economic benefits of this proposed company tax cut. The government itself has admitted it will deliver just one per cent of economic growth in 20 years time. I don't think the current Prime Minister will be here in 20 years time to see the impact. It would deliver a $2 a day increase in wages in 20 years time. This is at the time when wages growth has flatlined. We're seeing economic data released recently showing that living standards are going backwards. We on this side do, of course, have very strong concerns about what's happening with wages growth. The diminished bargaining power of workers and unions has played a key role in stagnant wages growth and rising inequality. And, of course, the scorched earth approach that those opposite tried in their 2014 budget, a budget that targeted so many vulnerable Australians—that budget really did, of course, try to rip up Australia's social security system.

The government have no real answers to the big problems that need to be addressed in our economy. Their only answer is to hand out $65 billion for big business. I do want to address one of the criticisms made by those opposite about our position on this issue. They like to go on that we only make these criticisms because of some kind of politics of envy or some kind of class war. But this is an extraordinarily outdated and dishonest notion—that the only way for Australia to grow and prosper is to give the biggest tax breaks to those who need them least. That really is the view of those opposite. It is a vision for a less fair, less prosperous and more divided Australia. Now, that's not the Australia that I know. The Australia that I know deeply values fairness. We are a kind and compassionate country. The proposed company tax cut will damage that. It will damage that kindness and compassion for our fellow human beings and it will badly damage our budget.

What we actually need right now is fairer growth—growth that is all about increasing employment, investing in our people and making it clear that if you work hard in Australia you'll be rewarded, but if you do fall on hard times you'll get help. From our point of view, in Australia you're never on your own. And that is why Labor will oppose this bill.

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