Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. Is the Prime Minister aware that under his government real wages for high-paid executives are growing, but they get a tax cut, and that real wages for people on modest incomes are going backwards, but they get a tax increase? Does the Prime Minister have any idea what is going on in the real world?

Mrs Sudmalis interjecting—

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

The member for Gilmore will cease interjecting!

Mr Pyne interjecting—

The Leader of the House will cease interjecting.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The Leader of the Opposition in his reckless political campaign based on the politics of envy undermines everything he claims to stand for. He claims to stand for jobs. He wants to stand for employment. He knows that jobs come from investment—he knows, because he said it right here, right where I am standing.

Mr Keogh interjecting—

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

The member for Burt is warned! The member for Burt will cease interjecting. He is warned.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

He said: 'Lower company taxes result in more investment, higher productivity and more employment.' He knows, because he argued right here that reducing company tax, reducing business taxes, will result in higher income for Australian workers—$750 a year on average.

Mr Keogh interjecting—

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

The member for Burt will leave under 94(a).

The member for Burt then left the chamber.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

He knows that what we need to do is get more private sector investment, and yet what he wants, what he talks about and what he is now arguing for is higher taxes on Australian businesses. He wants to have higher taxes, higher disincentives, to invest, to employ.

The Leader of the Opposition cannot have it both ways. If he wants to be a pro-growth, pro-investment person then he should stop halfway through this speech or stop after page 2 before he gets into all the politics of envy. He posed the question very well: how do we ensure Australia stays at the front of the pack? Good question. It used to be obvious to the Labor Party. It used to be obvious to the member for McMahon, who wrote a book about it. What you need to do is encourage investment, provide incentives for people to grow their businesses and to employ and provide incentives for people to work longer, to work harder, to get better skills and increase their incomes. What they are presenting is a Medicare levy increase which will provide a massive disincentive for anybody to earn one dollar more than $87,000. A worker who, by some calculation unbeknownst to her, finds herself earning an extra dollar above $87,000 will be paying all of that and $500 more in tax. That is the one dollar increase—a 43,000 per cent effective marginal tax rate.

He is only interested in appealing to this politics of envy. But I ask the Leader of the Opposition: how do you look to thousands of Australians on middle incomes and say to them in good faith: 'Everything Labor policy does will discourage you from getting ahead'? Every single measure is an attack on middle Australia and their aspirations for a better life.