Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Treasurer. Can the Treasurer inform the House how his plan to trade tax credits for slashing the penalty rates of 4½ million Australians will work? And what will the cost be to the Australian taxpayer?

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for the question. I remember the interview that he is referring to. I think it is important and all of those on this side of the House know that we need to do everything we can to get young people into jobs. This is what we want to do. We want to make sure that young people know that they are better off in a job than they are on drawing down welfare. And on this side of the House we are prepared to consider the options that are necessary to put young people into jobs. But we are not alone, it would seem, because the Prime Minister was asked earlier about the issue of penalty rates. What we found in South Australia recently was a deal done by the shoppies union which actually led to a reduction in penalty rates. The member for Port Adelaide said in relation to the deal done by the shoppies, 'This is what we envisaged—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for McMahon on a point of order. What is the point of order?

Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

Mr Speaker, the question was about tax credits.

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for McMahon will resume his seat. The member for McMahon should not raise frivolous points of order. I have warned on this matter before.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

In relation to the cutting of penalty rates in South Australia, the member for Port Adelaide said:

This is what we envisaged when Paul Keating's government put together the enterprise bargaining model.

He said:

This is exactly the model that we envisaged and it's in stark contrast to the idea that you would go up to the industrial commission and try to change—unilaterally—the penalty rates across the country.

So, Mr Speaker, some opposite understand the need for flexibility. Some opposite understand the need to consider any range of alternatives to ensure that we can get young people in work. I would encourage those opposite to join those on this side who want to see young people in jobs.