Bob Katter (Kennedy, Independent) Share this | Link to this | Hansard source

A question to the Treasurer: what Australian companies pay their CEOs, most of whom are from overseas, is illustrated by, for example, the Commonwealth Bank's CEO receiving $12.3 million, the Qantas CEO $12.96 million, the Westpac CEO $9.6 million, the Caltex CEO $13.4 million and the Macquarie Bank CEO $16.3 million. Will the Treasurer introduce a CEO salary and average employee wages transparency register, as touted by the British Prime Minister? And will his government consider tax rates in line with those of other countries, particularly European countries, where the issue of the huge and ever-widening disparity in income for the powerful is addressed by a graduated tax rate? (Time expired)

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

I thank the member for his question. When we see the figures of these salaries, whether they be of corporate CEOs or others, I am sure many people reflect on their own circumstances and they are very anxious about it. I think they ask many questions about it. Particularly in recent times people would be anxious about it because of what we have seen with real wages growth being very modest. What is important is that we do things in this country that ensure that we can grow real wages and we can support companies to increase what they are earning so they can pay their employees more. This government is focused on a national economic plan that is designed to boost investment in our economy to support small businesses in particular but businesses more generally so they can invest back into their businesses and grow the real wages of Australians. That is what we are doing to support the growth of real wages in this country, which is ultimately I think the key point the member is most interested in.

In terms of those in senior corporate positions and what they are paid, they are matters for their boards. Those CEOs are accountable to their boards and those boards are accountable to their shareholders. In particular, in major companies—whether they be banks or large retail companies or whatever company it is—they have an accountability also to their customer base and the social contract they have in the economy in which they exist, and it is important for those companies to get that balance right or, indeed, face the questioning and face the reactions of the Australian public.

But these are matters for those boards to determine. This is a free enterprise country. For over 200 years, this country has prospered through the investment of companies in this country. That has seen jobs created, infrastructure built and profits gained and, as a result, the overall majority of Australians being able to benefit. That disparity is as you say it is. But it is up to those companies to get the balance right, in terms of how they set those arrangements with their shareholders and their overall accountability to the Australian public for the social licence that they have to operate in Australia.