Rick Wilson (O'Connor, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer update the House on how the government is managing the successful transition of the Australian economy? In particular, how will the Enterprise Tax Plan to stimulate investment especially by small and medium-sized businesses in new jobs and higher wages to improve living standards for hardworking Australians?

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

I thank the member for O'Connor for his question and his interest in ensuring that particularly small and medium-sized businesses in this country can grow and can support the jobs that they put in place through their own investment. The government's Enterprise Tax Plan was introduced into this House within the first hundred days after the last election, and that plan supports stronger growth, more investment, higher wages and more jobs.

The modelling undertaken by Treasury shows that GDP would increase by over a percentage point, investment would be up by three per cent and wages up by a percentage point as well. There used to be a lot of consensus on this point, Mr Speaker. We know the Leader of the Opposition once said that cutting the company income tax rate increases domestic productivity and domestic investment. We know that the shadow Treasurer used to also be a supporter of cutting company income tax. He said, 'It's a Labor thing to have the ambition of reducing company tax because it promotes investment, it creates—

Mr Bowen interjecting—

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

The member for McMahon.

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

That is what the shadow Treasurer said. The former Prime Minister, Julia Gillard, said this: If you are against cutting company tax, you are against economic growth. If you are against economic growth, then you are against jobs. And, if you are against economic growth and jobs, then you are also against increasing wages …

That view is also shared by distinguished former officials in the Treasury. Ken Henry said this:

If the company income tax were to be cut the principal beneficiaries would be the workers.

So you ask the question.

It is bad enough that those opposite do not support the Enterprise Tax Plan over 10 years to make sure that we can drive investment and growth in this economy to lift real wages and to lift living standards, but last night we learnt in the Senate that they are even opposed to cutting the company tax rate for companies with a turnover of up to $10 million. They are opposed to ensuring that they would get access to the depreciation provisions which would allow them to invest in their businesses and support growth and jobs in their businesses. There are 100,000 businesses with a turnover of between $2-10 million. They employ on average some 22 people—so 2.2 million Australians' jobs depend on the health and wellbeing of the small businesses they work for.

Those opposite may want to go and have a chat with some of those small businesses as I have done. Maybe the member for Herbert would like to go and talk to Martin Locke from Martin Locke Homes who has a turnover of $7 million; he has eight staff and he supports 30 subbies. He says, 'I am a small business owner and to be labelled a big business is offensive.' Or perhaps the member for Hindmarsh might want to talk to Terry Tinney at Precise Tooling Australia. He says, 'It is very much going to help our industry going forward, which means that we can employ more people, which will be excellent for this state.' On this side of the House, we are committed to jobs and growth—(Time expired)