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

My question is to the Prime Minister. Last year company profits increased by 20 per cent but average wages for Australians only rose by two per cent. At a time when workers are not getting their fair share, how can the Prime Minister possibly expect Australians to believe that a Trump-style $65-billion tax giveaway will trickle down to the pay packets of millions of ordinary Aussie workers?

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

I thank the honourable member for his question. This once-upon-a-time powerful advocate for company tax cuts driving investment, productivity and higher wages, this Leader of the Opposition, now says that the proposition that lower business taxes result in more investment, more employment and higher wages is a fairytale. It's always good to look out for fairytales. And the Leader of the Opposition is quite capable, obviously—we see it all the time—of doing a 180 degrees on his own views. But what about the 2010 budget, written by the member for Lilley and of course ably assisted by the member for Rankin? I reckon the member for Rankin wrote this bit. He said:

The reduction in the company tax rate is expected to increase GDP by 0.4 per cent in the long run. Together with the resource tax reforms, this will lead to a long run increase in GDP of around 0.7 per cent and increase real after tax wages by 1.1 per cent. Over time this will lead to an increase in investment. This in turn will flow through to higher real wages for Australians.

That part of this 2010 budget overview has now been dismissed as a fairytale by the Leader of the Opposition. I have to say, to be fair to the Leader of the Opposition, that the document is not entirely without fairytale content.

Ms Chesters interjecting—

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

The member for Bendigo will cease interjecting.

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

I'm referring particularly to page 4 of the 2010 budget summary, which says 'returning to surplus three years early'—back to surplus—before every major advanced economy. So the Leader of the Opposition has missed the real fairytale, and the real fairytale is there and everywhere—and that is that the Labor Party is capable of economic management.

Ms Butler interjecting—

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

The member for Griffith is now warned. We're on track for the next step, if she continues to interject.