David Coleman (Banks, Liberal Party, Assistant Minister for Finance) Share this | Hansard source

We're already seeing the benefits of these tax cuts, because smaller businesses are already paying only 27½ per cent. But those opposite voted against that. They said that for a business with $2.1 million of revenue—which probably has, on average, a profit margin of maybe 5 per cent, which means it makes $100,000, which is about the same as the average household income across Australia—that should not be allowed. They voted against it, and it's very important that people understand that. They said small and medium sized businesses shouldn't be provided with tax relief. Presumably, they are therefore going to increase taxes on those millions of businesses that are already benefitting from tax reductions.

We are seeing that the proof is in the pudding with the massive job creation that's occurring in this economy today, which is an objective fact. It's important that that tax relief is extended to more businesses, because larger businesses also employ millions of people. Those opposite might not understand that, they might not want to acknowledge that, they might not appreciate that, but it happens to be true. Larger businesses employ millions of people. The argument of those opposite appears to be that tax reductions make no difference to the level of investment. Think about that logically, because that's what they're saying. They're saying that if you reduce the level of corporate tax it does not flow through to increased investment and more jobs. That's what they're saying. The logical conclusion is that those opposite would say, 'The tax rate doesn't matter at all.' They're basically saying that, regardless of the level of tax, corporations will invest the same amount of money. That is plainly absurd.

We've seen the US cutting their corporate tax rate down recently to 21 per cent, the UK is at 17 per cent and even France is going down to 25 per cent. But those opposite say that every business with $2 million or more of turnover should pay 30 per cent tax. That is a bad strategy for the Australian economy. This government understands how to create economic growth. There was 19 per cent growth last year in exports of rural products, because of those blockbuster free trade agreements that this government has got into. There was $75 billion worth of infrastructure investment, putting to shame the appalling record of those opposite with delay and delay and delay in those critical infrastructure projects, like Western Sydney Airport, which will create thousands of jobs and is so important for my home state of New South Wales.

We know that those opposite used to support company tax cuts, because the shadow Treasurer said reducing company taxes 'promotes investment, creates jobs and drives growth'. He's 100 per cent right. He should be true to his convictions and get the opposition to support these important reforms.

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